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Author: Lance Winslow Article source: http://www.kabish.com/. Used with author's permission.
Whether you choose to do your own books and accounting or hire those services out there are a few things you should know first.
A good book keeping service will normally charge you around $200 -500 per month while you are still somewhat small and you can receive: Profit and Loss Statements; Balance Sheets; Bill Paying Services; Checking Account Reconciliation; Journal Reconciliation; Tax Information Preparation; Tax Return Filing;
Etc.
If you are inclined to do your own books, that's ok too. Simply use the accounting software such as Quick Books or Microsoft Money. These are available at any Home Depot type office supply house and often may even come as part of the software on your new computer.
You must take this task seriously. If you find yourself slipping behind in your accounting duties it may be time to switch to a bookkeeper. Don't look in the phone book for a bookkeeper. Ask a friend for a referral. Look for an older woman named 'Margaret', 'Rose', 'Loraine', 'Edith', etc.
As your business grows you will need to know where you are at in your true financial health. Just because you have $30,000 in accounts receivables does not mean you can take home a large paycheck next week, it does not even guarantee you can make payroll this week. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
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