Bookkeeping for dummies pdf full#
Bookkeeping for dummies pdf software#

Bookkeeping for dummies pdf software#

With the help of cloud accounting software for small-business bookkeeping, you can pretty much automate the process. Plus, itвЂ™s really not that much more complicated. The double entry method leaves less room for error, making it the better choice for balancing complex books. However, if your business is incorporated, or if itвЂ™s your sole source of income, the single-entry method just wonвЂ™t cut it.

Bookkeeping for dummies pdf full#

For example, if you work full time but have a side business selling handmade jewelry, single-entry bookkeeping is probably enough to record your profits and expenses from that side business, so you can claim the amounts on your taxes.

This can be sufficient for very small businesses that arenвЂ™t incorporated. Single-entry bookkeeping is simpler - you only have to record each transaction once. For example, if you make a $30 sale, in the double-entry system that transaction could be recorded as a gain in your income ledger, and as a deduction to the total value of your inventory. In single-entry bookkeeping, each transaction is recorded as a single entry in a ledger, while in double-entry bookkeeping, a transaction is recorded twice.

What is the Difference Between Single-Entry and Double-Entry Bookkeeping? For digital records, QuickBooks allows you to easily delete or condense historic transaction data to save you storage space and secure sensitive financial information. Records older than six years can be securely disposed of by hiring a professional document shredding company. Making sure your records are well-organized can save you a big headache if youвЂ™re ever subjected to an audit.ДЄs a business owner, youвЂ™re required to keep financial and tax records for six years after the tax year in which they were received itвЂ™s a good idea to keep these archived records in both paper and digital formats for added security. Saving your records in the cloud also ensures that theyвЂ™re easily accessible in a digital format from any device. Take the time to organize your records, whether that means buying a filing cabinet or breaking out the label maker. An obsession with documentation is a good trait to have as a small business owner.