The bookkeeper enters all financial transactions into the accounting system used by the business. Transactions include purchases, sales, receipts and payments by an individual or organization. This can be old fashioned paper ledgers or software programs. QuickBooks has the most popular accounting software available for small businesses but there are many others available.
We recommend consulting with an accountant before you select
your accounting software program to make sure you have the best program for
your business. Some programs do not have
all the features certain business owners need such as inventory management or
progress billing. We also recommend that
you hire an expert to help with the setup of your accounting software
program. We see far too many cases where
incorrect setup leads to incorrect financial statements. Setup and training are always cheaper than
cleanups.
Once you have your accounting program set up, you will want
to establish a good process for getting the data entered. The sooner the data is entered the better so
you will have the information you need to run your business. Details such as who and why are always easier
to recall shortly after the event so entering purchases and other expenses
quickly is always a good policy.
Good record keeping makes it easier to have good
bookkeeping. Next time we will learn how
good bookkeeping creates good accounting.
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