Once your business is up and running, it is important to keep your accounting records updated. Start by setting up a basic bookkeeping system, choose the payment methods you wish to offer, and learn how to write receipts, invoices, and itemized billings.
If you have any question, please do not hesitate to contact us to set up a meeting with our tax/accounting advisor for free.
STEP 1: SET UP A BASIC BOOKKEEPING SYSTEM
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.
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.