Double entry bookkeeping is a fancy way of saying you want to keep track of how much money is coming in and how much money is going out of either your personal or business account. You'll divide your finances into two simple, easy-to-maintain categories: debits and credits. With double entry bookkeeping, you will keep track of expenses and income in simple terms so you can always know where your finances stand.
Every business transaction requires a credit or a debit. You are either transferring money from an account to an account, or vice versa. For these purposes, we can think of all customers, suppliers, vendors, banks or anyone else you pay as an "account"-as someplace else the money is transferred to or gotten from. Double entry bookkeeping is highly preferred to single entry bookkeeping because single entry bookkeeping only reflects on side of the equation or the other.
Double entry bookkeeping inherently possesses the following advantages to other methods of bookkeeping:
If you own a business, you'll find a plethora of bookkeeping programs online. Bookkeeping for your small business can be kept simple if you follow the guidelines presented in bookkeeping tutorials, making sure you reflect debits and credits of all sorts. You'll want to avoid complicated bookkeeping programs that go into anticipated expenses and profits until you've mastered the basics of bookkeeping.
If you can't seem to stay on top of your bookkeeping because you are too busy running the business to manage the finances properly, you will want to hire a bookkeeper. Many accountants work freelance for small businesses for low fees; you might not need a full-time accountant on staff, but you will be able to delegate the basic bookkeeping for a manageable amount.
 | The basic accounting equation elements are simple concepts you need to grasp in order to run a small business. Accounting is based on the concept that a balance must be maintained through debits and credits. |
 | What is a CPA? "CPA" stands for "Certified Public Accountant," and you would go to a CPA for tax advice. However, not everyone who provides tax advice is a CPA. The three letters "CPA" can mean a lot if you need any kind of tax or business help. |
 | Need to know how to prepare a general ledger? Wondering if you're properly recording your small business expenses and credits? The following advice will help you set up your general ledger sheets properly. |
 | You'll have to read a balance sheet if you ever consider going into venture capitalism, investing in small businesses or getting involved on a corporate level with accounting. |
Accounting for outstanding checks can be time-consuming and troublesome, but you'll want to make sure you do so on a regular basis to prevent serious balance sheet reconciliation problems later. |
