Posted by: Garcia & Cuadra, PA | August 25, 2014

The Basics of Accounting and Bookkeeping

Basics of Accounting and Bookkeeping

When it comes to accounting and bookkeeping for your Tampa business, knowing where to start can be difficult. You may be tempted with the idea of just putting it off until later, but this can be a detrimental choice. If you are not keeping track of how much your business is spending each month in relation to profits, you will never know just how well, or how poorly, your business is doing. Besides tracking profits, keeping track of your expenses will also allow you to have the necessary information about your company in order to correctly file your taxes. This will be a lot more difficult if you haven’t kept a detailed and organized record of your finances.

Before you begin organizing your finances, however, it’s important to understand the difference between accounting and bookkeeping. Oftentimes, you will hear these terms used interchangeably, but they do in fact have different roles. A bookkeeper will actually keep all of the financial documents for the company organized, and document all major transactions. An accountant will analyze all of the transactions compiled, interpret the information, and advise the company based on their findings.

Basic Accounting and Bookkeeping Principles

If you own a business in Tampa, chances are you need to decide about how to keep your financial records. There is no single right way to organize your records, as long as nothing is left out. Some basic tips for accounting and bookkeeping include:

  1. Keep Receipts. Complete summaries of your expenses and income will be the most important records you can have. The best way to do this is to keep track of all sales and purchases by keeping all receipts.
  2. Set Up a Ledger. Nothing more than a complete summary of revenues and expenditures, this will help you easily see if profits are being made. Setting up a ledger and never using it again is pointless- you need to make the effort to sit down at least once a month to fill it out, and calculate profits.
  3. Make Financial Reports. These don’t need to be technical or complicated. A basic financial report is a way to have information from your receipts and ledger in one organized place. This way, you have a simple report each month to compare the last months or last year’s.

If you own a business in Tampa, you are probably familiar with accounting and bookkeeping. However, at Garcia & Cuadra, we know that keeping track of finances sometimes will get put on the back burner in the wake of other seemingly more important tasks. If you are tired of not knowing where your company stands, call us today at 813-415-2431. We can help you avoid the mistakes that cost you money, stay organized, and even increase your cash flow.

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