Articles Tagged ‘Starting a business’

Importance of Bookkeeping for Small Businesses

Monday, October 18th, 2010

Bookkeeping is any process of keeping the records of financial transactions of the business. Fundamentally, it’s keeping track of all items dealing with finances – cash transactions, sales, purchases, among others – on a day to day basis. The one who ensures that all entries are recorded chronologically is the bookkeeper.

It is typical for small and medium business entrepreneurs to take care of the bookkeeping by themselves. It is also common that business managers have a tendency to ignore this part of their business for factors like:

a) complexities of the job;
b) they are more interested in generating sales and income;
c) they are not equipped with know-how and expertise; or
d) they simply do not have the liberty of time.

This is where most of the businesses go wrong and crash head on to closing.

Bookkeeping isn’t going to make you sales or earnings on the other hand this is one part that is important for the business’ future. Here are some of the reasons why bookkeeping needs to be given top priority in business operation:
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