Friday, October 26, 2007

Ideal Bookkeeping System - How To Create It

Bookkeeping has been around for a long time, and there has been a great deal written on what is essentially the ideal bookkeeping system. This article will demonstrate 2 examples of what are in my mind, the most ideal bookkeeping systems ever documented. Obviously the exact path to follow in forming your ideal bookkeeping system will vary depending on your business size and needs, and extra tips are included at the conclusion of this article.

The following are the 2 examples of what could be could be considered an ideal bookkeeping system. Both books are commonly available in book stores throughout the US, and definitely worth pursuing.

'Organize Your Books in 6 Easy Steps: A Workbook for the Sole Proprietor Service-Oriented Business' By: Donna M Murphy

As the title of this book suggests, this book shows how a sole proprietor of a service-oriented business can create and organize their bookkeeping system in series of basic steps. The proof of this system lies in the testimonials provided- by people such as James C. Smith, the president and CEO of SEMA- who could not praise the content of the book enough. In the 13 years of operating their business, SEMA inc analyzed practices and shortfalls which could have been avoided had they followed the steps outlined in the book.

'Organize your books in 6 easy steps' specifically focuses on cash flow management and understanding and dealing with the IRS to create the ideal bookkeeping system which is appropriate for your business.

'Setting Up and Running a Limited Company: A Comprehensive Guide to Forming and Operating a Company as a Director and Shareholder' By: Robert Browning

This book not only focuses on creating the ideal bookkeeping system within your business, but shows how success for your business will flow on from the basic cash flow management and organization of your bookkeeping. This book is ideal for a business operator looking to solidify a solid bookkeeping system, and to drive success from the foundation of this bookkeeping system.

Whichever bookkeeping system you decide to implement in your business, there are certainly some universal characteristics you should want to include:

Utilize Bookkeeping Software

The days of manual bookkeeping are long gone. Bookkeeping software allows for easy management and fast updates of your financial transactions.

Choose Your Bookkeeper wisely

You should select a focused and dedicated member of staff with a vested interest in the business to take care of your bookkeeping system (you may be the only person suitable for this role).

Stay on top of your bookkeeping

Never put off your bookkeeping! Record every transaction and keep every single receipt- don't let it mount up. The last thing your business needs is to be audited and to be found negligent.

If your business adheres to these basic principles your bookkeeping system will run as smoothly as possible, and success in your business will more than likely follow.

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