The actual process of keeping your books is easy to understand when broken down into three steps.
Make sure to keep all receipts or other acceptable records of every payment to and every expenditure by your business.
Summarize your income and expenditure records on some periodic basis (daily, weekly, or monthly).
Use your summaries to create financial reports that will tell you specific information about your business, such as how much monthly profit you’re making or how much your business is worth at a specific point in time.
Whether you do your accounting by hand on ledger sheets or use accounting software, these principles are exactly the same.
Prime Tax Solutions is here to help with any of your tax needs, and you can be assured that we know proper bookkeeping.