How is Bookkeeping working for your Business?

​Prior to computers and software, the bookkeeping for small businesses usually began by writing entries into journals. Journals were defined as the books of original entry. In order to reduce the amount of writing in a general journal, special journals or daybooks were introduced. The special or specialized journals consisted of a sales journal, purchases journal, cash receipts journal, and cash payments journal.

Bookkeeping (and accounting) today involves the recording of a company's financial transactions. The transactions will have to be identified, approved, sorted and stored in a manner so they can be retrieved and presented in the company's financial statements and other reports.

Here are a few examples of some of a company's financial transactions:

• The purchase of supplies with cash.
• The purchase of merchandise on credit.
• The sale of merchandise on credit.
• Rent for the business office.
• Salaries and wages earned by employees.
• Buying equipment for the office.
• Borrowing money from a bank.

​Each companies process will vary as it relates to the roles performed and how often these roles are performed.  However, each organization should align staff and internal controls that are in line with the business objectives.

​The most efficient way to outline your business objectives is by establishing detail policies and procedures because whether administrative or accounting, all roles are linked to financial consequences.

​Motivation is what gets you started. Habit is what keeps you going. – Jim Rohn