RECONCILING

The biggest job I have as a bookkeeper, is reconciling, and I thought you might like to know more about that.   What do I mean by Reconciling?   Reconciling is defined as: the process of ensuring that one’s records of transactions on a bank account matches the bank statement. That is, each time one writes a check, uses a debit … [Read more...]

Why Bookkeeping?

People like bank managers, accountants, and bookkeepers like myself are always telling you to get your bookkeeping done. Why?   And what is bookkeeping really?   Per Websters Dictionary it is defined as: “The process of recording financial transactions and maintaining the financial records to support a company’s financial … [Read more...]

Income Planning

This subject has already been touched on in another newsletter, but it’s such an important subject that I thought I’d expand on this a little more. Before you start spending your money, it’s important to do Income Planning! This is planning your week/month/year as to what and HOW you are going to get your income. This will then tell you where … [Read more...]

STATISTICS

I attended a weekly breakfast business meeting this morning, and was reminded of the importance of recording statistics, so that you take all the guess work out of management, and base your management decisions solely on statistics.   I’m afraid I’ve been a bit lax lately on such recordings, with the excuse that I’ve been very busy. Not … [Read more...]

HIT A SLUMP?

What do you do when your business isn’t doing so good; when your statistics are heading in the wrong direction? The first thing people often do when faced with this situation, is to stop advertising and promotion, as this costs money, and money should only be spent on vital functions! Huh? When faced with a slump:   THE MOST … [Read more...]

INCREASE YOUR PROFIT

I think I am fairly correct in assuming that you are in business to make profit – perhaps this is not the primary goal, but you wouldn’t survive long if you didn’t make any profit!   So, how do you make a profit?   Is it by: Spending less? Making more income? Raising prices? Buying the cheapest … [Read more...]

BOOKKEEPING

Firstly, wishing you all a Happy and Prosperous New Year! My new year is starting off fabulously, so this bodes well to making my plans come to fruition J. Have you made plans for 2014? You know how I always end of my newsletters with the words “keep it simple”? Well, that is my motto for the bookkeeping! As soon you find it becoming … [Read more...]

FINANCIAL REPORTS

The two most important financial reports, which are prepared for a business, are the Profit & Loss Account and the Balance Sheet. Unless you’re an accountant or bookkeeper, these reports are still little understood by most. Very often I hear the comment that the report shows a profit, but they have no money in the bank! How is this possible? To … [Read more...]

FINANCES continued again

Firstly, I want to make a note to clarify something I said in my previous newsletter: when I said to pay by dateline, I meant that ALL bills have to be paid by date: this means that you take ALL bills you have, sort them out by Due Date, and pay the oldest first, then the next oldest, etc. So all bills collectively, not just the oldest from each … [Read more...]

FINANCES, continued

Last time we looked at making a Financial Plan and how you should spend your money. A vital part of any such weekly/monthly decision making process on how to spend money, is in fact a prior step, which is: Planning your income for that week/month! What jobs do you have ongoing that you can finish? Check them out: what needs to happen for … [Read more...]

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