Appropriate Book-keeping

2 11 2008

It's important to remember that, over and above meeting legal requirements, day-to-day accounts are there to serve the business and not the other way round. It is not always appropriate to keep full double-entry accounting records.  Indeed, for many businesses, it would be a mistake that would be costly in time and effort for very little return.

A lot of meaningful information about a business can be found from simple single entry systems.  As with anything, it's a question of finding a system that gives the most return for the least amount of time, effort and cost.

For many business owners it would be more cost-effective to pay a bookkeeper rather than attempt to do it themselves, this allows people to work on their business rather than in their business. You could be spending more time on winning sales, developing relationships with customers and enhancing your products or services.

Finally it's important to recognise that things change over time, so what might have worked a year or two ago could need updating if things are getting unwieldy.  Don't be afraid to make changes!

by Kassia Gardner – Bright Angels