Microsoft Accounting - basic bookkeeping question

Sep 11, 2008 21 Replies

If you go that route make sure everything is presented in a date sorted manner in relevant bundles not a couple of shoe boxes with the papers just crammed in. If an accountant accepted such a mess you'd be paying through the nose for him to sort it out before even starting to do the accounts.

But a simple cash accounting book is more than adequate for the self employed, though doing the maths is can be a bit of a chore and error prone. That is why I keep my business data in a spreadsheet on the computer it does the maths far quicker and more accurately than I could. It also allows simple tracking of creditors and debitors.

That's good general advice, applying equally whichever system of book keeping is used.

All depends on the size of the business and the number of transactions. I would not dream of suggesting use of an accounts book for a business that employed several people and issued more than several invoices a day, for example. Also, an accounts book is not a good source of up to date data for making decisions about the future direction of an expanding business.

But for many sole traders or a small partnerships (e.g. man and wife) it is all that is needed.

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required