With tax season among us, it is never too late to start back at the basics to make sure your books are in order! Here are the top four steps to bookkeeping to make everyone’s live easier.
1) Analyzing financial transactions and assigning them to specific accounts
2) Writing original journal entries that credit and debit the appropriate accounts
3) Posting entries to ledger accounts
4) Adjusting entries at the end of each accounting period
By incorporating these steps in your everyday business bookkeeping system, you will save yourself a headache later! Specifying and sorting your books into payables and receivables is also essential to keep track of where money is coming in and out of the business. Besides getting ready for tax season, having your books organized will help you see areas of what is working well for your business and what you need to change or improve to make your business more profitable.
Take a look at this article that talks more about the four steps to bookkeeping and explains in more detail the basics of bookkeeping!
How can the Kael Company help you with your bookkeeping? We offer cash reconciliation and management, payroll, human resources, and more!
