how to setup accounting/bookkeeping for a small business?

Discussion in 'Accounting and Taxes' started by michaelgh, Mar 29, 2013.

  1. michaelgh

    michaelgh
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    Hi there!

    I need to set up accounting for a small business (1 or 2 persons) that manufactures and sells handcrafted gifts at craft markets once a month. Later on I am planning to sell or consign through to antique/souvenir stores

    Can someone tell how to organize bookkeeping and accounting in this case?

    What documents, ledgers do I need? Can I use just excel for the beginning?

    The ultimate goal is to be prepared to file tax return (Form 1040 Schedule C) and have all needed documents in case of audit.

    Thank you
     
  2. patrick0001

    patrick0001
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    Yes, you can use excel for your own records. When closing account, handover all your receipt and invoice to audit and accounting firm. You can also survey few accounting company for more solid advice.
     
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  3. GeekGhost

    GeekGhost
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    A very good free tool is http://wave.com. It pulls data from our Paypal and business accounts and sorts it. It provides reports as well.
     
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  4. isabelbond

    isabelbond
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    All you need to run the most basic set of accounts is: a cash book to record money entering and leaving the business; a sales ledger, detailing money received and amounts still owed; a purchase ledger to track outgoings; and a wages book, which details salary payments and National Insurance contributions. or hire a bookkeeping service. They can help you to reach success in your small business.
     
    #4 isabelbond, May 18, 2015
    Last edited by a moderator: May 18, 2015
  5. Kevin Peter

    Kevin Peter
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    There are many online book keeping services who help you. Just figure out the geography they are into which is feasible for you.
     
  6. navarromarillou

    navarromarillou
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    When choosing an accounting system that suits your business needs, don't be limited by choice — some businesses successfully use a combination of both cash and accrual systems.
     
  7. shami95

    shami95
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    Hi bro,excel is very useful fr this purpose you can store thousands of records in organize form,it is really very helpful for business point of view your all expenses and profits save in one sheet and easily access able.
     
  8. Alvin Horgan

    Alvin Horgan
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    There are several accounting software which most of the small businesses use such as Xero, FreshBooks, Kashoo, SlickPie, Wave and many more. Join one of them and say goodbye to excel spreadsheets.
     
  9. Ady

    Ady
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    You can't do every accounting activity by using Excel. Accounting software such as Wave, Kashoo, QuickBooks Self-Employed or Pro are the good tools that can help you set-up accounting for your small business. First, take advice from your accountant.
     
  10. anna c

    anna c
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    I suggest using a software to make it easier for you to focus on more income-yielding activities. As for software, the following are the most popular: Quickbooks Online ($9.9 per month), Freshbooks ($9.5 per month), Zoho Books ($24 per month), Wave Accounting (free but with visible ads). Accounting is an important part of your business so reading up even if you will be using a software or outsourcing the service will be advantageous to you. Make sure to keep all records of your transactions. Wishing you best of luck!
     
  11. Mike Wilford

    Mike Wilford
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    If you have limited knowledge or not much time I would avoid using excel. If you need to manage your accounts simple, small business accounting software removes the hassle - My recommendation would be KashFlow its great for everything you need including online invoicing and statements, cash flow management and VAT returns
     
  12. harunsing

    harunsing
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    you can make a excel sheet and maintain your all debits and credits. so it will easily understand all comes and goes related to your business
     

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