Tips on Doing Your Own Bookkeeping

Are you in charge of your bookkeeping or is that someone else’s job? Whether you operate your own business or use it to manage the family finances, doing your own bookkeeping can be rewarding. Perhaps dabbling in bookkeeping and accounting are not on the top of your list of things that excite you. However, did you know that getting involved in bookkeeping can potentially save you lots of money? Regardless if you want to believe it or not, basic housekeeping tasks such as paying your bills on time and financial reports all fall under the realm of bookkeeping.

According to a finance article, before you can tackle bookkeeping you have to know what is involved. Basically, it is the job of the bookkeeper to ensure that financial transactions are reported, managed, and accurately filled out regardless if you are making a large purchase for your business or paying your utilities at home. When it comes to the basics of bookkeeping you will have to be familiar with the terminology such as: accounts receivable (money due from customers’), cash (receipts and disbursements), loans payable (bills from items you bought on loan), accounts payable (bills to pay), purchases (goods that you bought), inventory (products to sell), retained earnings (company’s profits that are reinvested into the business), sales (track incoming revenue), equity (how much each owner puts into the business), and payroll expenses (your employees pay checks).

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