The first thing that you must do whenever you begin properly keeping your books is to set up a chart of
accounts. The chart of accounts is a list of accounts that are specific to your business that will be used to record all business activity. As transactions occur you enter the amount in two different accounts from the chart of accounts at the same time.
The main task of keeping the books is putting the amount in the proper two accounts. All the accounts boil down to Revenue, Expenses, Asset, Liability and Capital.
I will set up your chart of accounts and show you how to determine which two accounts to use to record the amount of each transaction. This is known as double-entry bookkeeping. You will get the hang of it before you know and I will help you along the way when you need it. At year…
View original post 36 more words