Bookkeeping, Controller and CFO Services | The Quantify Group

The ABCs of Small Business Bookkeeping: A Beginner’s Guide

From The Quantify Group | Accounting and Bookkeeping Services for Small Businesses

There are countless small businesses out there that struggle to keep up with their financial data and transactions, resulting in inaccurate data that can impact a business’s profitability. From a small dental practice to a technology startup, each industry has its own specific bookkeeping and accounting needs that are unique to it, which can make it challenging to find bookkeeping and accounting services that really understand your specific needs.

At The Quantify Group, we have experience working with industries and companies of all types, helping clients improve their financial reports and have accurate financial data to make informed decisions about their small businesses.

If you are trying to improve your company’s bookkeeping and accounting, we are here to help. We want to give you everything you need to know to grow your business with accurate accounting and bookkeeping. So, let’s start with the basics of bookkeeping.

The Basics of Bookkeeping

When you really understand the basics of bookkeeping and accounting, you can grow your business and ensure you are making smart financial decisions. From recording, organizing, and reviewing your financial transactions to instituting accounting automation to make the tax planning process smoother, your bookkeeping helps keep your business on track.

There are three key terms that you should understand to get started with bookkeeping — assets, liabilities, and equity.

  • Assets: The resources owned by the company, like your cash flow and inventory.
  • Liabilities: Anything that your company owes money to, like loans, accounts receivable, accounts payable and other operating expenses.
  • Equity: A measure of ownership in the company, like capital, stock, earnings, etc.

It is important to have a good grasp of financial terms as they can help you understand financial statements that you may come across during bookkeeping. Understanding these terms can save you time, prepare you for potential audits, and help you make informed financial decisions by providing accurate data on your small business’s profitability, annual revenue and cash flow.

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Setting Up Your Small Business Bookkeeping System

Choosing the right bookkeeping system for your business can be done either by using a manual system, a spreadsheet-based system, or accounting software like Quickbooks online.

While a manual system is a lower-cost way to manage your bookkeeping, you are more likely to have errors since you manually enter numbers. It also does not scale with your business as it grows.

We recommend using a cloud-based accounting software that allows you to keep accurate financial records on the go and as your business grows. While it costs money, consider it an investment in your business’s growth. Plus, you will benefit from more accurate bookkeeping records and it is a user-friendly way to track business expenses.

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Recording and Categorizing Transactions with an Accounting Software

To ensure you track all the right financial activities like sales, purchases, and payments, you should record all the financial transactions and categorize them into expenses, income, assets, equity, and liabilities. As your various bank account statements come in, you should also recognize and balance your cash flow to confirm your expenses, avoid costly mistakes, and keep a pulse on your financial health.

If your business cannot keep up with these kinds of accounting tasks, our team of accounting professionals at The Quantify Group can help. Our bookkeeping and outsourcing services help you manage and maintain your accounting software. This allows you to access relevant information and make strategic business decisions.

Tracking Income and Expenses

Successful financial management means keeping watch over your income and expenses. Various methods can help, such as using software to track transactions or manual bookkeeping for small businesses automatically. Regularly assessing financial statements such as the income and balance sheets enables you to understand your business’s profitability and net worth.

Practical tips for monitoring cash flows include maintaining a cash reserve, regularly reviewing cash in- and outflows, and promptly following up on receivables.

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Industry Spotlight: Bookkeeping and Accounting for a Dental Practice

Having access to bookkeeping and accounting services is important for the long-term financial health and success of dental practices, which is why The Quantify Group offers its services to this unique industry.

Dental offices have a unique business model that combines healthcare services and retail elements, such as selling dental care products. This requires meticulous and comprehensive financial management.

To effectively manage finances, dental practices need to recognize their specific financial challenges and opportunities. These include navigating insurance claim processes, managing high equipment and supply costs, and handling the patient billing process.

Effectively managing the finances of a dental practice also includes planning for future growth. This could involve things like budgeting for new equipment, planning for an expansion or renovation, and scaling your dental services to reach new customers.

Bookkeeping services for Dentists | The Quantify Group is here to help

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Reliable Outsourced Bookkeepers for Startup

No matter what kind of business you are running, our entire team can provide expert advice and valuable insights to navigate the bookkeeping and accounting process with confidence. Our team includes highly skilled bookkeepers and accountants who are dedicated to helping you with your revenue growth.

When you work with our dedicated team, you will benefit from specialized accounting and bookkeeping services that can meet the unique needs of startups and businesses of all sizes in Philadelphia and beyond. Whether you are starting out or looking to take your business to new heights, our accounting services can help you establish a strong financial foundation so you can meet your business goals.

Get in touch with us today and discover how The Quantify Group can help you with outsourcing your accounting and bookkeeping to improve your financial situation and take advantage of revenue streams to grow your business.

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