Accounting

Let’s kick this off with the word Accounting. What does it mean?

‘The process or work of keeping financial accounts and records.

The word ‘accounting’ is often used interchangeably with the word ‘bookkeeping‘.

Both refer to the process involved in recording, managing and reporting of the business finances.

When thinking about ‘accounting’, what steps are taken to record and manage income and expenses.

What are the processes?

  • Some write in a paper diary when they spend or receive money
  • Others record expenses on an Excel spreadsheet, and have a list of all the invoices issued
  • Possibly utilising online accounting software to help automate data processing
  • Use a bookkeeper or an accountant to manage business accounting.

It is recommended to do daily accounting/bookkeeping or at least weekly.

Trying to remember what was done at the start of the month will likely lead to missed and inaccurate information.

Business owners should ensure that they or someone, is regularly managing the business accounting.

A clear process will ensure effective management of finances.

Regularly record information and have accurate data to provide financial reports when required.

Business owners, usually wear many hats: Boss, worker, marketer, bookkeeper, administrator, and more.

If accounting is not your favourite thing to do or it is taking up too much of your time, maybe considering hiring or outsourcing this task.

Accounting is essential for every business, big and small. So plan time and make sure you or someone does the accounting.

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