![]() You record daily sales in a sales journal. Maintaining sales and cash receipts journals It can also result in some hefty accounting fees as you pay your accountant to sort it all out. Using business funds to pay for personal expenditures complicates your recordkeeping and can lead to serious tax problems. Whether your operate your business as a sole proprietorship, partnership, or corporation, always keep your personal transactions separate from your business transactions in your accounting software. In order to prevent irregularities by your employees or others, it's wise to restrict access to your accounting records. If you have employees, your chosen software should permit the use of passwords to control access to all or some of your accounting transactions. If your accountant knows the software you've chosen, he or she will probably help you set it up. Ask your accountant for recommendations prior to investing in a system. ![]() While many accountants will do their best to accommodate their clients’ already installed software, their experience with companies of you size and (hopefully) your industry will provide real insight. With so many options like QuickBooks, MYOB, Peachtree, as well as online options, take the time to consider the pros and cons of each. Shop around for the right accounting software, and be sure to ask for your accountant's opinion. You should seek the advice of an accountant before setting up an accounting system of this nature. For example, some or all expenses may not apply to only one department, but must be allocated among departments. Unfortunately, it may be difficult to keep a separate set of books for each product line or department. The practice may reveal that one product line or department is profitable and another is not. If you have more than one product line or department, you may want to keep a separate set of books for each. Many entrepreneurs find separate accounting provides more meaningful information for their products. ![]() ![]() Summaries of transactions in your general ledgerĬonsider separate accounting for different product lines.Accounts payable, if you purchase from your suppliers on credit.Accounts receivable, if you extend credit to your customers.Sales and revenue transactions, including cash transactions.Learn where to record what, and how often to do so.Ĭontrol of your financial recordkeeping begins with accurately recording pertinent transactions. While few entrepreneurs start their own businesses because they're fond of paperwork, recording your day-to-day sales, purchases and other transactions is a must. ![]()
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