Bookkeeping is a very important ongoing process in every business of every size, but it is critical to the small organization! Incomplete records are one of the most serious errors a small business owner can make. Very few people, other than accountants, actually enjoy number crunching; however, if an accounting system is kept simple, it can be done with a minimum amount of time and energy. Accurate and complete financial records can help a business owner chart the growth of the business and assist in making plans for the future.

A company’s books should include accurate and thorough statements of sales and operating results, fixed and variable costs, profit and loss, inventory levels and credit and collection totals. In addition, cash receipts and credit sales, expenses and inventory received should be tracked daily. Employee expenses, including pay and deductions, should also be tracked. The company should have on hand past tax returns and reports to regulatory agencies.

Business expenses and personal expenses need to be kept separate. A new business needs to open a separate business account and deposit all money from the business into that account. Personal money and business money should never be mixed. This will eliminate some of the headaches at the end of the year when getting records together for tax purposes.

It is very important to organize expense records and develop a routine in recording transactions. By keeping good, accurate records, a business owner can obtain a quick overview of expenses by category for budgeting planning purposes. Good records help a business owner determine how profitable the operation is at a glance.

Without a bookkeeping procedure in place, a small business is prone to reacting to financial problems instead of catching them before they happen. Many small business owners are so involved in day to day management that they neglect record keeping and this can be fatal to the business. Reliable tracking of records can be a business owner’s management partner in spotting and reducing errors that can be costly to the business. Having good records also makes life a lot easier for the business owner and/or tax preparer at tax time.

The SBDC is offering the Working with QuickBooks Pro 2009 seminars to assist small businesses in their bookkeeping endeavors. The three-part series will begin on Jan. 28. Part two will be held on Feb. 4 and part three will be held on Feb. 11. Each seminar will be held from 6-9 p.m. and will be conducted at the SBDC office, 2424 Sam Houston Avenue in Huntsville. The fee for each part is $50. For more information or to register, see the Web site at: http://www.shsu.edu/sbdc, or call the number listed below.

If you have any questions about bookkeeping, whether by hand or computer, please call the Small Business Development Center at (936) 294-3737 for an appointment. Our services are free of charge and confidential and our counselors offer one-on-one consulting.