What is a bookkeeping system?

A bookkeeping system contains ledgers (records) that records all accounting transactions: sales, expenses, payrolls, cash/banks, accounts receivable and payable.

Why do you need a bookkeeping system?

A bookkeeping system can help you keep records for various reasons. These include analyzing business activities, attracting investors, seeking finance, recording and paying taxes as well as meeting your reporting requirements.

Is it required by law?

Under tax law, you're required to keep records relating to income tax, VAT, payments to employees and business payments.

How do you set up a bookkeeping system?

It might be difficult to set up your own system without an accounting background. If you need help getting started, contact your accountant, bookkeeper or business advisor. Once your system is set up, with the proper training you can take control of your finances.

• Understand the Different Bookkeeping Systems.

It is important to consider what payment methods you will offer when you start your business, and review it regularly to see if you are keeping up with your customer's payment preferences and if you are meeting the needs of your business.

• Learn about the Different Types of Payment Methods.

Before you can collect payment, you may need to provide the customer with an invoice outlining the goods and services that you provided.

Once payment has been made you'll also need to offer the customer a receipt confirming their payment of goods or services. 

• Download a Template for Writing an Invoice
• Download a Template for Writing a Receipt
• Download a Template for Writing a Credit Note