Small Business Bookkeeping Tutorial - Part Two: Bookkeeping Systems, Software and Methods

• A notebook can be used to write in your daily transactions. This may work well for new businesses, but I would not recommend this book keeping method to businesses that generate a lot of transactions.
• A ledger is a preferred bookkeeping system more by accountants than a notebook. You may wish to use a ledger in addition to an accounting software program.
• A checkbook may also work well for new businesses. You should make sure to separate your business checkbook from your personal checkbook.
• Microsoft Excel can be a valuable tool in setting up an bookkeeping system. You can download a pre-written spreadsheet here (instructions are included in the help tab).
• An bookkeeping software program will enable you to generate reports and financial statements with minimal effort on your part. Some bookkeeping software programs I have run across that seem to be favored amongst small businesses are:

QuickBooks: www.quickbooks.com This is the program I use and prefer. It is very user friendly and easy to learn. There are a few limitations with the reports it generates, but that shouldn’t be a problem with small businesses.

Tally 6.3: This is a popular program in India. “It's very easy and user friendly. Of course, you need to have some knowledge of Financial Accounting to use it.

It can also work in multiple currencies For eg. the INR (Indian Rupees) and USD (US Dollars). Apart from just the amounts, it also manages your Inventory/Stock.” Lata from www.dotcomwomen.com.

Peachtree: www.peachtree.com

Quicken: www.quicken.com “I like it and am sure I don't use it to it's full potential. But it does make it easier come tax time. I can easily compile information and pass it along to the lady who does my taxes!” Owner of www.cafewed.com

Links to tax web sites:

• Internal Revenue Service: www.irs.gov (USA)
• Australian Taxation Office: www.ato.gov.au/
• Canada Customs and Revenue Office: www.ccra-adrc.gc.ca/menu-e.html
• Inland Revenue: www.inlandrevenue.gov.uk/ (United Kingdom)
• Other Countries: www.taxsites.com/international.html
   

Jacky Gamble is an experienced bookkeeper and available to assist small businesses both locally and virtually.

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