This can be sufficient for very small businesses that aren’t incorporated. Single-entry bookkeeping is simpler - you only have to record each transaction once. For example, if you make a $30 sale, in the double-entry system that transaction could be recorded as a gain in your income ledger, and as a deduction to the total value of your inventory. In single-entry bookkeeping, each transaction is recorded as a single entry in a ledger, while in double-entry bookkeeping, a transaction is recorded twice. What is the Difference Between Single-Entry and Double-Entry Bookkeeping? For digital records, QuickBooks allows you to easily delete or condense historic transaction data to save you storage space and secure sensitive financial information.
#Bookkeeping for dummies professional#
Records older than six years can be securely disposed of by hiring a professional document shredding company. Making sure your records are well-organized can save you a big headache if you’re ever subjected to an audit.Īs a business owner, you’re required to keep financial and tax records for six years after the tax year in which they were received it’s a good idea to keep these archived records in both paper and digital formats for added security.
Saving your records in the cloud also ensures that they’re easily accessible in a digital format from any device.
Take the time to organize your records, whether that means buying a filing cabinet or breaking out the label maker. An obsession with documentation is a good trait to have as a small business owner.
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