Businesses should stay up to date on their payroll accounting, both for their financial knowledge and to stay compliant with government regulations. If your business is ever audited, you need records of your taxes and employee compensation. Every business step requires capital, from transforming an idea into a model to investing in its expansion. As a professional bookkeeper, you would keep track of a company’s financial transactions and record them in the general ledger accounts. Find out more on bookkeeping accounting skills, how to earn accounting degrees and bookkeeping certifications, getting jobs, salary expectations, and more. With this in mind, accountants should familiarize themselves with the basics of small business taxes.

However, depending on a bookkeeper’s location, niche, and clients, they may command a higher salary, sometimes reaching $50,000 per year or above. But as with any other enterprise, running your own bookkeeping business takes some key elements of preparation and knowledge. My favorite social media platform for getting bookkeeping clients is LinkedIn®. Accounting software eliminates a lot of the busy work bookkeepers were required to complete…even just 5 years ago… and free you up to deliver premium service at premium rates. Our comprehensive bookkeeping business course, Bookkeeper Launch, is designed to be completed in ten (10) weeks.

Can I do my own bookkeeping for my business?

Another way to get valuable bookkeeping experience and on-the-job training is through an internship. You can then learn how to use multiple accounting software programs and work tools on the job. Internships can also provide ways for you to get bookkeeping and payroll services your foot in the door with a specific organization. To be an accountant, you generally need education requirements like a bachelor’s degree in accounting. It takes care of the daily number crunching and data entry, but that’s ALL they do.

Double-entry accounting enters every transaction twice as both a debit and a credit. Your business’s books are balanced when all of the debits equal (or cancel out) all of the credits. Although it’s more complicated, it can prevent bookkeeping errors. And since it takes equity, assets and liabilities — on top of expenses and income — into account, it typically gives you a more accurate financial snapshot of your business. Single-entry accounting records all of your transactions once, either as an expense or as income.

Bookkeeping 101: Bookkeeping Basics for Small Businesses

Some bookkeepers, especially those with bachelor’s degrees in accounting, may decide to become certified public accountants (CPAs). CPAs have similar job responsibilities to bookkeepers, but must also analyze data, suggest best practices, and make predictions. Accounting is an organized process of recording, analyzing, and reporting the financial transactions of a small business. It helps business owners understand their financial position, make informed decisions, and fulfill tax obligations.

The Talent Acquisition team is dedicated to connecting people with exciting career opportunities and partnership within Intuit. The virtual network of other bookkeepers is also a great resource. You can work with other bookkeepers and tax experts to share https://www.bookstime.com/ and expand your knowledge. Laura is a freelance writer specializing in ecommerce, lifestyle, and SMB content. As a small business owner, she is passionate about supporting other entrepreneurs, and sharing information that will help them thrive.