Starting a small business out of your home, offering products or services like business consulting, photography, selling on the web or a MLM? You are now faced with tracking all expenses and income for your business and you certainly do not have the money yet to engage a bookkeeper or accountant. If your business is a sole proprietorship, whether it is Canadian or US shareholder-based ownership, you do not need an accountant to submit financial company (books) to the IRS (USA) or Revenue Canada). Business income and losses are reported as part of the annual income tax phone. For this small business start-up, you do not need to buy fancy accounting software, like Quick Books or Accpac track your business.
Only part of incorporating Bizfare Enterprise Inc 2005, it claims to participate auditor. My accountant did insist on using Quick Books software for my business accounting. Prior to using simple table template Business Accounting served my needs for over ten years. This simple spreadsheet accounting passed many audits by Revenue Canada (CRA and Revenue Canada Goods and Services Tax. Both hardcopy circular pad and electronic tablet version of financial my books were accepted by Revenue Canada. (BTW the audit disclosed more ways for me to stay back taxes for the last three years! Now this type my review!)
A new start-up business venture, you will probably generate somewhere between 10 to 30 accounting transactions per month. These transactions were items as cost, revenue (sales), Liability (Loan) type transactions and Sales Tax (Federal + State / Provincial) Collection / deductions. This transaction is further broken down into different accounts. any accounts that you set up for your business is called Image of accounts . Recording your business financial transactions (Journal Entries) can be executed with pen and ink on an accounting columnar pad or electronically with a computer spreadsheet (MS Excel, Open Office, Star Office).
Whether you use electronic or hardcopy media, you need to develop a simple Journal template to create your Business synoptic Journal . This Synoptic Journal format has the advantage of allowing you a complete view of all individual transactions journal entry against all the various accounts. Creating this Synoptic Journal is easier to do than you think and requires no prior accounting or bookkeeping knowledge
Tip # 1 :. You may further reduce the accounting items (calendar entries) by combining such things as ‘all sales month “ and ‘ all parking receipts for the month” one mining line for the month.
Where do you start to identify the different accounts that need to Synoptic calendar?
If you now works for a company or government, secure one of their payroll forms. Look at each area identified as expenses – meals, mileage, hotel accommodations, taxi, car rental, telephone & cell phone, air fare, office supplies, etc. This is a great place to identify the various companies expense accounts you have to set up the company accounting books. To complete the conversion table accounts, business bank account, Sales, cogs (KSV), Sales Tax Collection, Marketing costs, and others as needed. Each of these accounts will be listed as a title across the top of each column Synoptic calendar. Each row (line item) will be unique business calendar by you. The journal transactions are grouped and summarized for each business month; usually, January to December.
So your Synoptic Journal would look something like this Sample Synoptic Journal http://picasaweb.google.com/carl.chesal/BookkeepingTemplate.
The The column headings might be in this order (from left to right):
DATE | DESCRIPTION | Bank deposits | BANK Audits | Revenues | Cogs | Sales tax collected & remitted | OFFICE SUPPLIES costs | COST # 2 | COST # 3 | ETC
Tip # 2: Unless your business is incorporated or LLC, you do not have to go through the expense of opening a current account with your bank. Usually Business accounts charge a higher monthly fee, charge for printing checks (checks) and do not offer any interest on your monthly bill. Instead, open a separate personal bank account (maybe savings). This will show a ‘tax’ you’re holding company separate from your personal banking. Remember that you are a sole proprietor and all your business income (and losses) to be applied directly to the tax upload (like the IRS and CRA).
To save time and do is very simple, I have already created a simple spreadsheet Synoptic Journal template that performs all calculations for each month and roll up to 12 business months so it is easy to be in annual personal income tax preparation. This Synoptic Journal template has Debit / Credit checks and balances, tracks sales taxes, mileage and amount of each account for your entire fiscal. If you want this FREE accounting template, you can get it on Communication Innovate. With a few key strokes, which will help identify you, I will gladly send you this FREE Synoptic Journal Template and also any future Small Business Tips
Tip # 3 :. One accounting rules is that every time you take a journal entry (line item which applies to trade against the relevant accounts) the debits and credits will remain equal at all times. This Debit Equals Credit calculator is built into this FREE accounting format. When you have finished typing Line (journal entry), check to ensure that the amount of the debit cell equal to the amount of credit cell. If they are not equal, you have not done properly the amounts in the journal entry computer. Correct the problem before entering the next calendar entry website.
You are now equipped to achieve your business financial books with some simple accounting software. Happy accounting!
and Happy Selling!