As a small business owner, thinking to prepare bookkeeping or accounting systems can be scary. However, good financial data is very important for the success of your business, and preparing the bookkeeping system can actually be quite simple.

There are many online accounting programs available today. QuickBooks is my favorite. QuickBooks is perfect for very small businesses to very large and sophisticated businesses. Easy to use, but can grow with you because your business develops. Let me show how easy it is to start with QuickBooks. (This post does contain an affiliate link for the product that I use and highly recommend.)

Start with QuickBooks

I suggest starting with a simple initial version of QuickBooks online. It has all the main features you need to easily keep your small business bookkeeping records. If your business grows, and you need additional features, you can always improve to a higher QuickBooks level program. When you update, all your old data comes with you, you don't lose something. Unfortunately, you cannot drop the version with QuickBooks. So don't block yourself in a higher monthly payment when you just started. I do not recommend using entrepreneurial QuickBooks. This lost some important features and saves a lot of monthly fees. using the guide is very usefull.

You will have a simpler time to complete your small business bookkeeping if you have followed my advice to keep your business financial transaction separate from your person. You can find information about the topic here.

1. Connect your financial account

After you register for a simple QuickBooks start the first thing to do is connect your business bank account and credit card. After connecting, all future transactions will be imported immediately, saving a lot of time to enter information manually. You can also import past transactions from up to 90 days ago.

On the right, click the button, connect the account, shown below with a big pink arrow!

After you click the button, it will bring up this screen to link to your financial account. Just type the name of your bank or your credit card company. You will follow the instructions to enter your login information. If given the opportunity to import data from the past, go as far as you need.

Do the same process for all your business bank accounts; Includes checking accounts, credit cards, or paypal accounts.

QuickBooks will start importing transactions from this account.

After the data is imported, on the Home page, click one of your financial accounts. This will bring up bank feed and must look like this.

In accounting, each transaction has two sides, this is called multiple entry accounting. We already know one side, it is a bank account or a credit card that transactions occur. Now we have to set an account to the other side, in many cases income or expenditure accounts. In speaking accounting, we call this code.

2. Create a special account name

QuickBooks comes with an account of income and expenses that you have created that you can use, or you can make it yourself. All of these accounts consist of your account chart and will be a line item on your financial report. Each account has a type, for example, costs or income. It might be tempting to always use the account name given by QuickBooks to you, but I will encourage you to use it yourself if necessary. The core of the bookkeeping is to have financial data that helps you make a decision for your company. Financial data must make sense to you, and presented in a way that helps you in your decision-making process.


Author's Bio: 

Content writer