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Small Business Bookkeeping: the Basics

Can bookkeeping be self-taught

Small Business Bookkeeping: the Basics

Are you just starting a small business? Then you have a lot to learn and a long way to go before you can say that you have everything under control. When you’re just starting out, there is a risk that things may fly under the radar or slip through the cracks. To manage your time and your finances wisely, consider outsourcing a part of the business. 

The logical choice is to outsource the non-essential functions such as paperwork and technicalities, and that is where San Diego bookkeeping services come in. Full-service bookkeeping services cover multiple functions, including payroll processing and tax preparation and consultation. That way, you can focus on building a strong and stable foundation for your business and not get distracted by time-consuming technicalities. 

Whether you want to do your own bookkeeping or have a professional bookkeeper do it for you, you will need to have some basic understanding of how small business bookkeeping works, so read on!

Can bookkeeping be self-taught?

While bookkeeping can be a self-taught skill, beginner small business owners would be ill-advised to take this path. Even if you have the time, energy and willingness to go through the daunting learning process, there are risks.The potential errors you may face as a self-taught bookkeeper could prove to be costly and complex to fix. A qualified bookkeeper can spare you the headache

How can I do my own bookkeeping?

Think of it this way: managing your personal finances is no picnic. Keeping record of all the financial transactions day in, day out, and managing the finances of your business, payroll and tax preparation included, is not exactly something you can do while sipping on a cocktail at Bonita Cove. It can be much more daunting and time-consuming than you expect, especially if you are not entirely sure what it is that you are supposed to be doing.

You will need to: 

  • Opt for a bookkeeping method that works best for you
  • Set up a schedule and stick to it
  • Study and set up business accounts
  • Balance the books
  • Prepare financial reports in a timely manner
  • Keep accurate financial records
  • Store records securely

While using specialized bookkeeping software can be immensely helpful if you are determined to do your own bookkeeping, outsourcing to a professional bookkeeper is a safer option which requires minimum engagement on your part.

What are the two types of bookkeeping?

Bookkeeping can be divided into two categories: single-entry and double-entry bookkeeping, with the latter one being more complex and demanding in terms of time and experience.

What is full service bookkeeping?

A full service or full charge bookkeeping covers a full scope of bookkeeping tasks which helps you: 

  • Reduce stress in your day-to-day life 
  • Save time and energy and put your resources to better use
  • Limit distractions and stay productive during a typical day on the job
  • Avoid risks and repercussions such as IRS penalties
  • Keep track of finances and make sound long-term financial decisions

So what does a full service bookkeeping checklist include?

  • Recording financial transactions, invoices, receipts and other relevant business records
  • Conducting banking activities and reconciling bank statements to internal accounts
  • Issuing and maintaining financial reports
  • Handling deposits
  • Processing payroll and other payments, including paying suppliers
  • Billing clients
  • Managing taxes and withholdings

Save time and money with San Diego’s #1 bookkeeping services

How can I do my own bookkeepingManaging and keeping record of day-to-day financial transactions promptly and accurately is important, but it is not on top of your priority list, especially when you have a business to run. We can track your financial data for you to help you measure the financial performance of your business month in, month out, and make sound and timely financial decisions accordingly. We can also help you with step-by-step tax preparation and consultation on the safest course of action in the event of IRS audits and notices. Reach out to David York’s Tax Service today!