You just started your own practice/business/blog/e-store/company! Congratulations!
The elation when the first sales come through and then the next and the next.. Before you know it, you're at the end of your first year and the thought of trying to put together all your receipts/payments/expense is maddening enough to make you want to pay an accountant for a pricey"rescue" job.
Stop procrastinating! Do up your accounts from day one!
I have prepared a set of essential bookkeeping records which I believe is perfect for the new, growing business - probably with about 5-10 transactions a month.
The set of essential bookkeeping records includes:
(1) Income records template
(2) Expenses records template
(3) Petty cash records template
(4) Profit and Loss statement
The first of our series is the Income records.
What is more important than capturing your income!
Income in this sense is basically everything that the company receives for the sale of its products or services.
So if you are a doctor/medical practitioner...
- income comes from services rendered to your patients, whether direct from your patients' pockets, or your claims from the patient's insurance company,
If you are a lawyer..
- income comes from your billings to your clients for services rendered
Remember that income is recorded when your billing/invoices have been raised, you do not have to wait for it to be paid to recognise it on your books!
Income SHOULD NOT include loans, investment capital and capital injections. So if your shareholders are putting in money to start the business - this should be recorded under the Balance Sheet (another topic altogether) and you can get in touch with us to see how we can do that for you. But whatever you do please do not classify it under the Income.
I hope you found this useful and if you have any questions, please feel free to get in touch!
Download your FREE INCOME RECORD TEMPLATE
1. Income is all the revenue the company is making (cash/credit basis)
2. Income is NOT loan, investment capital and capital injections
3. If you need professional assistance, feel free to contact us for a non-obligatory and complimentary consultation at firstname.lastname@example.org.