In practice, maintaining an accurate account can be a complicated process, especially as your business grows. Each transaction can involve several entries in several different accounts, and if you have hundreds or even thousands of transactions to be recorded (recorded), transactions can quickly become difficult to handle. Technology certainly helps. Accounting systems such as QuickBooks, FreshBooks, NetSuite, and Xero bookkeeper gold coast are much easier to use than the old-fashioned system for recording every transaction in a ledger.
But still, maybe the time will come when you have to hire a professional. Even when you use the software, it’s easy to make mistakes. And the time needed to enter all that information might be better spent elsewhere. Although you will often hear the terms “accountant” and “bookkeeper” used interchangeably, they actually have different functions. A bookkeeper handles daily tasks to record transactions and make sure everything is represented correctly. An accountant focuses more on the big picture, produces high-level financial reports and helps you with things like filing taxes and securing financing.
You can start by hiring a bookkeeper and accountant part-time or on a freelance basis, hourly, and see progress from there. When your business grows more than 30 employees or more than $ 1 million in revenue, maybe it’s time to consider hiring full-time staff.
Bookkeeping is a complex area, and there is much more to learn. But this tutorial has given you the basic tools you need to be able to keep accurate records and ensure your business is in good health.
You have learned how to record simple transactions using double-entry bookkeeping, and how to make an accounting system that makes sense for your business. You have seen links between daily bookkeeping entries and overall financial statements such as balance sheets and income statements. And you have learned the type of help you need, and when.
So start your books, use the accounting software of your choice (or an old ledger if you want). Be sure to keep all your order receipts and records in a well-ordered filing system, so you can go back and verify whatever you need. And continue to ensure that the books are balanced regularly.