3 Fundamentals of a Small Business Accounting

Introduction

The fundamentals of a small business accounting enormously maneuver a jaunty vital function in your business be it a small business or not. Naturally according to the usual course of things you would remarkably aspire for your business to be able to exceptionally spring up, to continuously grow and grow.

You would aspire to favorably gain more and more not just mere clients but more so for satisfied customers with your products that is marketed or sold as a commodity. Thats the supreme end goal towards which efforts are directed of all who are in the business sectors. Here’s where fundamentals of a small business accounting is highly essential.

In any business venture and a speculative business enterprise in the industry, it essentially entails an accompaniment of not just the efficient marketing strategies but most significant of all the “math and numbers” too. The fundamentals of a small business accounting should also be granted an ample time in view of growing the business.

Hence, how do we go through an efficient fundamentals of a small business accounting? What are the basics that every business owner ought to know to ensure the business flow runs smoothly?

Do you ought to hire the special services of the best licensed accountants and bookkeepers in town with their expertise in the books and accounting for your small business accounting? Or can you yourself be able to candidly do it all on your own? How do you learn the fundamentals of a small business accounting?

How do you surpassingly go through with a small business start-up? First and foremost, having an outsource accountant or bookkeeper may be a bit costly for your small start-up business. You may imminently opt to seek assistance from the BIR office to assist you in doing yourself the bookkeeping and go with the three (3) basic fundamentals in a small business accounting and the BIR Book of Accounts yourself.

For small business owners you dont necessarily need to hire any licensed accountant and or bookkeeper to do the math and numbers for you. Below is a simple quick and easiest step-by-step guide I have outlined for you for your fundamentals of a small business accounting. Here are the essential things needed for your business establishment.

3 Fundamentals of a Small Business Accounting

1. Cash Receipts Book- it is here where you record and list down all your daily sales in your small business primarily indicating the date, the particulars of what was bought from your business, the amount and the corresponding total.
2. Cash Disbursement Book- it is here where you record and list down all your daily expenses in your small business primarily indicating the date, the particulars, the amount, the OR#, the amount, and the total. With the attachment of all the corresponding official receipts.
3. Invariably involve God in your small business every day. By involving God, you can be extensively assured that your vision mission for your business significantly aligns with Gods will for you.

2 BIR Book of Accounts

1. Ledger Book- is your book of final entry or a summary. We use this in order to classify and sort things. A ledger is a book or a digital record in excel that stores bookkeeping entries, in a summarize way. It shows the account’s opening balance. You need to know your ending balance with your cash… your AR, liabilities, all the debits and credits to the account for the period and the ending balance which is very significant to create the financial statements or trial balance. There are add-ons, there are subtractions. It forms a final record of all business transactions. Since it is a report revenue and report expenses in real-time it helps you stay on top of your business spending. This is done monthly to get the annual total. Ledgers are also named as the 2nd book of entry. The Ledger Book should be officially stamped by the seal of the BIR.
2. Journal Book- is where you record all your financial transactions on a chronological order for the first time. It has a date from top to bottom. It should be complete with cash, accounts receivable, inventory, property or liabilities. The Journal Book should be officially stamped by the seal of the BIR. A transaction starts its accounting journey in your records from the daily sales book towards the Journal Book. Journals are the nest stop for your transactions.

Table 1. Accounting Ledger Book for your Small Business Accounting

NO.	DATE	DESCRIPTION	ACCOUNT OR JOURNAL NO.	DEBIT (PAYMENT/ DEPOSIT)	CREDIT (DISBURSED)	TOTAL BALANCE (DR-CR)
1	MAY 13, 2023	CHECK FROM CLIENT MRS DAVIDSON	J-01	USD 500		USD 500
2	MAY 17, 2023	PAYING A MEAT SUPPLIER	J-02		USD 200	USD 300
						USD 300

Build Your Family Around the LORD

We work hard to essentially provide for the family. Work and businesses invariably eat our time as parents, yet we also need to give time for the family and the kids. It is imperative to build your family around the LORD.

Attend regular Sunday service together as a family, and bible study with the church pastors and church members. Read the bible everyday now while you still can. Because a time will come in the severe 7 years tribulation that bible will be forbidden by satan and his evil kings or nations. Fervently pray every day, every hour for everyone in your family, your children, your spouse, your parents and siblings, grandparents, close friends and neighbors, church pastors and church members, the leaders of nations, pray for America and Ukraine, pray for Israel.

Our salvation belongs to the Almighty God’s Son–- Christ Jesus. Lord Jesus died for us in payment for our transgressions. God has been patiently waiting for you to humbly come to Him and accept His Gift of Life. Will you be willing enough to accept it? The time is now, not tomorrow as tomorrow might be to late.

Lord Jesus says he is coming in haste. (Revelation 22: 7 “Listen!” says Jesus. “I am coming soon! Happy are those who happily obey the prophetic words in this book!”)

Colossians 3: 23 Whatever you do, work at it with all your heart, as working for the LORD, not for human masters.

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