GET YOUR BOOKKEEPING STARTED
What is bookkeeping?
Bookkeeping is the task of recording the day-to-day transactions of a business and organizing them into a format that accountants want.
For total sales, add up the amounts from your invoices during the year. Then subtract your small business expenses. The result is your profit, also known as net income. This one-page summary is called your income statement. Here is a sample income statement for your reference.
Bookkeeping requirements are simple for sole proprietors, but can be complex for corporations. Corporations require a balance sheet and an income statement, which feed into each other. If a transaction is missed or done wrong, the balance sheet won’t balance.
Every transaction your business makes will need to be categorized to an account. An account is basically a category for all of your income (sales) and expenses (supplies, insurance, bank fees, etc.).
Why does my small business need bookkeeping?
The goal of bookkeeping is to create the general ledger and the trial balance. The general ledger is the full list of every categorized account transaction. The trial balance is a one-page summary that shows each account’s totals. Your accountant needs both for general information and to make sure your books balance.
Can I do the bookkeeping myself?
If you want to take care of the bookkeeping yourself, you’ll need to bring us the following:
- Trial balance and detailed general ledger
- Year-end bank statement and reconciliation
Does True North Accounting do bookkeeping?
Close your eyes and imagine not having to do your own bookkeeping. Do you feel that summer sun breaking over your face? A good bookkeeper can make that feeling a reality for you all year long.
Bookkeepers can run your payroll, pay bills and taxes, collect invoices and track all of your financial transactions.
True North Accounting can provide bookkeeping on a quarterly or annual basis. If you have 150 or more transactions per month, we can connect you with a professional bookkeeper that will do a great job.
If you hire us to do your bookkeeping, we’ll need:
- 12 months of bank statements with cheque stubs
- 12 months of credit card statements
- Sales invoices for entire period
- Receipts for all business expenses paid for personally
- List of all personal expenses paid for by the business