3 Bookkeeping Basics You Should Know as a Small Business Owner to Guarantee Your Business is in Good Health Financially

  • Home
  • Blog Articles
  • 3 Bookkeeping Basics You Should Know as a Small Business Owner to Guarantee Your Business is in Good Health Financially

3 Bookkeeping Basics Required to Determine the Health of Your Business

A businesses finances ranks high among the priority list for a small business owner as it is the lifeline to all other areas of a business. Without money a business is unable to operate. Which is why we’re sharing the 3 Bookkeeping Basics you should know as a small business owner to allow you to manage the financial health of your company and plan for the future growth and success of your business.


Similar to going to the doctor for a check-up, your business should also receive a financial check-up periodically to confirm everything is in good standing. Doing so helps provide insight on how a business is fairing financially and allows small business owners to manage their finances accordingly based on the information found.

We’re going to go through the 3 Bookkeeping Basics required for a financial check-up to manage the financial health of your company: Collecting, organizing and preparing your business’s financial affairs.

 

Collecting

The first step in the financial check-up process is collecting all financial records for your business and is the foundation when determining where your business’s financial health stands. These records include:

  • Sales
  • Purchases
  • Receipts
  • Payments
  • Cash/Bank Transactions

All records listed above need to be collected for your business at your financial check-up to help determine how healthy your business is financially.  

 

Organizing

The second step in the financial check-up process is organizing all of the financial records collected above. Some reliable cloud-based software programs we recommend using when organizing and tracking your business’s records are:

  • SAGE
  • Quick Books
  • Quick Books Online

These easy-to-use software programs allow a business to organize all areas of its financial transactions and provides the ability to create accurate reports to help determine your business’s financial health.

 
Reporting

Which leads us to the third and final stage of the financial check-up process — reporting. Using the information collected and organized above, will allow you to create reports to review your business’s financial health and adjust accordingly. The four main Financial Statements are:

  • Income Statement
  • Cash Flow Statement
  • Balance Sheet
  • Statement of Changes

In addition, your businesses Financial Statements can be issued by accountants three ways:

  • Audited financial statement
  • Reviewed financial statements
  • Neither audited nor reviewed

These reports will allow you to review your business’s health and adjust accordingly to provide a long and healthy life.

 

Hiring a Professional

KB Accounting Services Inc. is happy to help your small business with its bookkeeping. Want to see how KB Accounting Services Inc.’s Bookkeeping Services for Small Businesses can bolster your business this year? We recommend checking another one of our articles out here.

 

Contact Us

For any questions you may have, please feel free to contact us by phone at (306) 530-9548 or by using our online contact form below.


Share This Post:

Related Posts

Categories

Latest Testimonial

I have known Kim since high school. 4 years ago, CRA decided to do a net worth audit on our personal and businesses. Our expensive chartered accountant at the time basically left us for dead. I have always known Kim as smart and fearless, so I called her for advice.

Kim and her team dropped everything and took over for me. She allowed me to work with them as much as possible to help lower costs. Kim worked with the auditors and put everything together meeting CRAs ridiculous timelines. Since then Kim has taken over all my taxes, cleaned up and streamlined my bookkeeping. She has assisted me with GST and PST audits, and everything in between!

If Kim does not know the answer to your question, she takes the time to research and provide you with the correct answer. Her prices are fair and affordable, her service is outstanding. Her personality is relaxed yet professional. She makes you feel part of the team, not just a number! Kim and her team consistently look out for my best interest. It's not every day your accountant genuinely cares about your situation and what’s really in your best interest. My years of loyalty will definitely continue!

"Consistently looks out for my best interest"
Reylene Esmond E Z Automotive Ltd.

Contact Us

Questions? Comments? Call us today at (306) 530-9548 or fill out the form below:

Have Questions? Call Us Today At

Call Us