As a small business owner or solopreneur, you want to produce the best products and services for customers. On the other side of the business equation, the idea of bookkeeping can either be just another part of the job or completely freeze you in your tracks.
If you fall into that latter camp or just need a refresher on some of the most common types of bookkeeping accounts for a small business, we're here to help:
1) Cash: Definitely the most familiar of bookkeeping accounts, all business transaction pass through the Cash account with most bookkeepers using two journals (Cash Receipts and Cash Disbursements) to track everything.
2) Accounts Receivable: This account represents money owed to companies from their customers for either products or services. It usually helps to track these accounts by sending out timely bills and invoices.
3) Accounts Payable: This account represents the other side of the equation in which the business is sending money out of the company for services and bills. Accounts Payable makes sure you do not pay any of these invoices/bills twice and/or late.
4) Inventory: If your business sells products or you use certain products for your services, you will need to use bookkeeping to careful keep track of all of your inventory.
5) Sales: Obviously, this is where you track all of your company's revenues, so updating and reconciling this account daily is crucial to your business success.
6) Payroll Expenses: If you have a staff, this account represents your company's biggest cost, and you need to keep all of this info up-to-date since you are dealing with taxes and other government requirements.
There are plenty of other accounts you can add to your bookkeeping, so if you have any questions, feel free to email us at email@example.com!