Most business owners start out as beginners to book keeping. Being an entrepreneur is not the same as being a book keeper, they are fundamentally different aspects of running a business. Never the less , it is very important that the business owner understands book keeping and has a decent understanding of what the accounts mean and the process off collating the business data , recording the business data, and preserving the data. laws like the companies act and the several income tax acts impose a legal obligation on all business owners to maintain and retain adequate business records, sufficient to readily answer questions on any of their transactions. Yes you’ve got to ask for and retain receipts, but its more than that.
You should learn the basics of double entry book keeping, so you should get to know your debits from your credits. This is important as it will give you tools to build an understanding of how simple and complex business transactions are recorded. As a small business owner, you will often need to go to your records and answer queries from interested third parties such as banks, HMRC, suppliers and customers, and they will expect you to respond in an accurate and timely manner. So , it will be critical that you have recorded or had recorded, the relevant transactions accurately, retained the said records, and are able to interpret what you are viewing , correctly.
Its beyond the scope of this short article to instruct on basic book keeping, however one can point out some straightforward routes. For starters, you could walk into a size able book shop, and ask for beginners level textbooks on book keeping , if you know a book shop in an academic or financial district, you might get book sellers with good knowledge of these text books to help you
Another path is to look up short courses, and register for an instructor led beginners book keeping course. Book keeping courses tend to be very practical and very often, your instructors will be practising professional book keepers, who will show you how to handle several real life situations.
Ultimately, your main focus must be on running your business, however it is imperative that you understand your financial records. You will probably get a book keeper to maintain your books as your, business progresses, but with a solid knowledge of what those records contain, you should be in a stronger business position.
Here at North London Accountancy , we do offer a book keeping service and welcome inquire about our services.