How to keep your business accounting
Every company, large or small, will always have a constant concern: how to keep business accounts
Managing accounts is an activity Mandatory for all entrepreneurs at least if you want to have an order in your business.
After all, if you do not control the expenses and income that you have in your venture, you will not be able to know what you must do to improve, or if your business is succeeding or is going to canalla.
Instead of seeing this as a burden or a negative, look at it on the bright side: accounting helps your business in three important ways:
- Document management: It is essential to have a good management of the important papers of the company.
Even the law mandates it.
- Tax handling: here all business operations that are subject to taxes are recorded, every certain period the tax to be paid must be calculated.
- Account management: seeing the financial situation of the business it is easier to make decisions and evaluate the progress of the business plan.
A good management of finances of your business is vital to survive the difficult economy in which we live and the very competition that we find in our industry.
It is important be careful with financial decisions from the beginning, it’s not just about having the iniciativa to start a business.
Every company needs a solid financial structure that is generating profits to really be a negoprofitable business.
Keep accounting under control is escencial to success of your company.
It is not only about doing good marketing on popular networks or different media, a business also requires those office tasks that maybe they didn’t cross your mind when you started, but suddenly you realize that you have to do it and it takes some time.
There are some entrepreneurs or businessmen who are experts in managing finances and business administration, have studied a related career or have experience in the ámbito.
This articulo is directed to the rest of the people.
If you are one of those who started their own business without experience in finance, and decided to bet on your great iniciativa or passion, I am going to help you here to know how to handle numbers as well.
what good is it to you Keep the accounting of your business? Quite apart from the fact that it is the obligation of each company to keep an accounting record for the correct payment of taxes, it helps you to get a better iniciativa of how your business is doing financially.
When you have an accurate iniciativa of the money coming in and going out, you perro see if your business is truly making money and you have a broader visión of this.
Keeping the accounting you perro know the total sales made, the total costs incurredthe inventory of your products, debts, accounts receivable, etcétera.
Are you ready to learn how to keep your business accounting? Then keep reading, because here I’m going to teach you everything you need to know.
How to carry the accounting of a company step by step
1. Get an accounting program
A computer is essential for any business and it is here where we perro do all our accounting.
Thanks to programs designed to keep accounts of a company, we perro save ourselves a lot of work.
These programs are made so that all information is entered and the programa itself does the maththrow reports and give you a more complete visión of the financial situation of your business.
We must have programa that has cloud storage, so we have all our information safe.
What would happen if the computer stops working or is stolen? Having the information in the cloud, it will not be lost.
If we are very short of budgets, we have the free alternative to using excel.
Later I will explain how we cánido keep accounts with the famous spreadsheet program.
2. Record all the operations of your business
As mentioned above, it is recommended keep a daily record.
All operations carried out on the day and their respective documents must be recorded.
This is where an accounting program perro make your life easier.
You will have to take your time to do this every day.
Both for money and for the goods that are sold and acquired.
Be careful when record income and expenses of the business, a small mistake could give you a headache if the accounts do not agree.
Is important to have record of all expenses related to the business, no matter how small.
Our business must be able to cover all expenses and costs involved.
3. Keep the documentation of your operations
In addition to recording income and expenses, you must keep the documentation that supports each operation.
You should always have the document that proves that said transaction was made.
You must request invoices, receipts and any supporting documents for each operation of the company.
It is your obligation to be able meet your tax obligations and everything is transparent in your business.
you should also save legal documents of the company, such as licenses, permits, certificates and any legal documents that are important to the business.
You should keep these updated documents and in a safe placeboth en línea and sin conexión.
4. Take control of business assets
The value of your business is also represented in his heritage, property, equipment, goods, inventory, etcétera.
Everything that is part of your business must be successfully registered: products purchased, manufactured, raw materials, unfinished products, defective, sold, destroyed, etcétera. all this must be taken into account.
should also record depreciation of equipment and propertythis is like an expense that your business must be able to cover.
Inventory should also be recorded, if possible on a day-to-day basis.
This is how we make sure manage correctly the depósito of the products.
5. Identify the taxes to pay
You must know the taxation of your business.
All sales are subject to tax and the business itself too.
Depending on the laws of your country or city, you will know what is the percentage to pay in taxes and any cost associated with your business.
This has to be equipo to the accounting program so that the deduction is automatic.
Every company must be able to pay your taxes.
If the company does not have the funds, it is because things are being done wrong and the business is not producing enough profit.
It is your obligation to know your responsibilities as an entrepreneur and not let yourself be surprised with objetivos for non-compliance with the law.
Know how the fiscal calendar works it will help you to keep up to date in this aspect.
6. Cómputo your accounts
The only way to see the financial health of your business is in a cómputo sheet.
This accounting cómputo espectáculos you graphically what you have (assets), what you owe (liabilities) and what your business is worth (equity).
Fortunately, this perro make accounting programa automatically or Excel, it depends on what you use.
If you have recorded all your trades, you don’t have much work to do.
cánido give you the Statement of income, cash flow and cómputo sheet general.
The only thing you will have to do is analyze them carefully to see where you are failing and what you perro improve in your business to disminuye costs and increase profits,
These reports are usually made monthly and annually.
They are used for the administrative board or partners to see the company report and must be submitted to the fiscal entity that regulates your company.
Are the results of the business.
They also serve to present them as proof of how business is going and be able to acquire more resources (for example, if you want to request a loan to expand your business).
If you have followed all the steps, congratulations! You’re doing a great job for the financial health of your business.
Have all documents and papers in orderin addition to a good management of finances.
Although accounting does not directly bring us profit, it does help us earn more money thanks to a better understanding of our situation.
A big mistake is to see accounting as one more expense, it is the most common if we consider hire an accountant to take care of it and acquire some accounting programa.
However, if you are willing to spend some time When it comes to the accounting side of your business, you’ll be happy to know that you perro save yourself the hassle of buying accounting programa and use a spreadsheet program you already have on your computer: Excel!
So next I’m going to teach you how to keep your company’s accounting with that program, and so on. save you money in having to buy an accounting program.
How to carry the accounting of a company in Excel
Excel is a powerful tool for capturing data and is widely used by businesses for recording of accounting operations.
It perro even generate financial statements and give you the necessary reports to keep all the accounting aspects of the company under control.
Spreadsheets are very useful because they allow us to handle large amounts of data.
Along with the functions that Excel offers us, we have a powerful tool to manage our company’s finances.
We have to take control of our sales, income and expenses, depósito management, payments, etcétera.
That’s a lot of accounts!
Entering all this data into Excel will allow us to make specific inquiries per month and per year, so we cánido see if we are spending more, how much we earn and where we could improve.
All this information will help us make better decisions for our company.
We must bear in mind that Excel will help us keep track of business accounts, but if we keep very complex and large accountsmaybe it’s more work or you cánido’t manage everything correctly.
It is not an automatic solution either, we have to entrar the data manually and there is the possibility of making mistakes.
We perro say that It is an ideal solution for small businesses They don’t have much of a budget.
However, the most difficult part is setting up the correct system to keep our accounts.
Thanks to the excel templateswe have pre-designed spreadsheets to carry out our accounting effectively.
It’s an easy way to organize accounting and to save money instead of buying accounting programa.
Excel itself offers you templates designed for businessonly certain aspects must be configured to adapt it to the needs and characteristics of your company.
You don’t need knowledge advanced computers to keep your accounts in Excel.
Another aspect to consider is security.
We know that Excel works with archivos on our computer, but as I mentioned earlier, we don’t know when it will.
something unforeseen happen and lose everything.
The same thing we found in Excel, too applies to Google plus Sheetswhich is a great alternative since all our data will be automatically saved in the cloud.
This is an advantage for those who are familiar with the Google plus system, as well Office also offers its own cloud storage.
It is important to keep in mind the security of our data.
Then how start using excel for bookkeeping of our company?
The first thing is to make sure that you perro actually use excel. If you are not familiar with this program, it perro be tricky at first.
You have to spend some time learning the correct use of spreadsheets.
Anyone perro learn, you just have to be willing to do it.
The first step is to go familiarizing yourself with the templates.
Open Excel and the first thing you will see are the different templates available.
By default we see the “Blank Book”, but if you look at the others, you will see All possibilities that Excel offers you.
We have the search bar where we cánido filter the templates that are shown to us.
We cánido try the category “Company” to find a template that fits the needs of our business.
Once we have identified the template that we want to use, it is best to someone guide us through the process of use.
Some templates do not include instructions and we perro be confused in the first instance.
Fortunately, we cánido complejo turístico to YouTube where we will find specific tutorials on these templates.
taking the time to learn the correct use of some templateit will help you understand the interfaz and the functions you should use to get the most out of it.
you cánido also make changes or adjustments necessary to adapt the template to your business.
If you are going to make any changes or adjustments, do it at first.
Imagine that you have been using a template for a long time and wanting to modify something, you make a mistake.
You will be risking losing information and time.
In the end, you will learn by trial and fallo.
Start filling in your data and start learning.
Once you understand how it works and are more confident, the process will be simpler.
Any data you entrar into the spreadsheet cánido be store and reusemaking it easier than handling a calculator for fácil operations.
Furthermore, from these data you perro create statistics and graphs in different ways.
With so many options you may not know where to start.
Here I will name you 6 Excel templates vital to keep the accounting of your business:
- fácil invoice: You will have to submit invoices and you have different invoice templates available to choose from.
- Sales report: This template is the easiest way to keep track of sales.
You cánido see the profit you get from trading activity.
- Cash flow statement: This report helps us to see the money that is available in the business.
Here we will entrar the movements of money made daily in the company.
- inventory list: If you manage depósito of products and sell them, here you cánido keep track of all products purchased or manufactured and sold.
With their costs, prices and quantities.
- profit and loss statement: Every business needs to know if it is making or losing money.
Here the income and expenses are totaled to reach a final conclusion.
- Cómputo sheet: This is the final report.
It allows you to know the financial position of your business: assets, liabilities and equity.
As your business grows, you will need other types of templates and record more information.
These mentioned templates are the ones that every business should have and Excel offers free.
Another advantage is that you cánido import data from other sources.
For example, you perro pass data from electronic invoices, bank reports, etcétera.
to your spreadsheet to record your accounting activities, something that will make our lives easier.
When companies grow accounts do too and accounting is more complicated.
At some point, Excel may stop be efficient enough for your business needs.
That’s when you are forced to purchase accounting programa and possibly you already have a professional in the field to take care of this aspect.
However, transition cánido be difficult.
What about all the information stored in Excel? Will be lost?
Excel perro be integrated with many of the most habitual accounting programs.
These programs give you the ability to import all your excel data and thus nothing is lost.
you might as well continue using spreadsheets with your accounting program.
If you still don’t handle Excel, this is your oportunidad to lose your fear of it.
Start registering your accounts and keep the accounting of your business successfully.
Keeping business accounts it doesn’t have to be a headache.
It’s just a matter of getting organized and learning how to manage the company’s finances.
With the help of accounting programs or Excel we perro keep the accounting of the company without problems.
You don’t need to start by hiring an accountant, you cánido register the accounts yourself of your small business.
One of the most common reasons why most businesses fail is because of a mismanagement of money.
They run out of money and perro no longer cover their own costs.
Another reason why many people hesitate to start a business is because they have fear of the accounting part.
They think that it is a very difficult aspect and they will have to hire someone no matter what.
Thanks to all the information available today, and programs like Excel, we ourselves cánido take care of business accounting.
A few minutes a day is enough to keep everything under control.
Get organized and do not leave this important activity for the last moment.
And you, how do you keep your business accounting? Leave me your comments below!
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Eric
I am passionate about Internet business and digital marketing.
I have learned a lot through practice, and I share my experiences to espectáculo that anything you want to achieve is possible.
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