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How to Do Your Own Basic Bookkeeping

Posted by : Premraj | Posted on : Thursday, March 1, 2018

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Who does all your bookkeeping tasks such as taxes? Do you tackle these items yourself or are you terrified of the thought of doing your own bookkeeping? Whether you run a small business or have to do your own personal taxes, learning the ins and outs of basic bookkeeping can save you a lot of time and frustration. I’m sure you are already aware of the vital importance of basic bookkeeping whether it is from a business perspective or a personal standpoint. But you, like most people, probably avoid anything that deals with lots of paperwork, forms, and breaking pencils. You should not be afraid of the word bookkeeping. Bookkeeping is not as hard as you image it is. In fact, if you can become an expert (even just a little bit more knowledgably) in basic bookkeeping, getting your taxes done will be a whole lot easier and go by much quicker. You may not have realized this but basic tasks such as paying your bills on time and taking care of the finances all fall under the realm of bookkeeping? Here you have been going bookkeeping all along and never even knew it. In order to be good at the basics of bookkeeping you will need to familiarize yourself with some bookkeeping terms. These terms include: accounts receivable (money due from customers’), accounts payable (bills to pay), loans payable (bills from items you bought on loan), cash (receipts and disbursements), inventory (products to sell), purchases (goods that you bought), sales (track incoming revenue owners’), retained earnings (company’s profits that are reinvested into the business), equity (how much each owner puts into the business), and payroll expenses (your employees pay checks).

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