Basic Accounting and Bookkeeping Principles

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Posted on April 22, 2014 in Accounting

One of the aspects of running a business that makes most owners blood run cold is bookkeeping and accounting. Unfortunately it is a necessary evil and it must be done right in order for the business to strive. With quality financial information available you can stay in good standing with your bank and the government as well as see the overall health of your company.

Why is an Income Statement?

An income statement will give you an overall picture of your financial situation for any given time. This will allow you to attract investment, pay taxes, cast projections and evaluate your financial position for the future. What needs to be done is to keep receipts or other acceptable records of payments to and every expenditure from your business. You also need to summarize your income and expenditure records on some periodic basis, (generally daily, weekly or monthly) and use your summaries to create financial reports that will tell you specific information about your business, such as your monthly profits or company worth. If your bookkeeping /accounting are done right you can rely on it to give you an early indication if there’s something wrong with your business.

Different Methods of Accounting

There are a few different ways you can handle your accounting and bookkeeping tasks. You can choose to have a bookkeeping system using manual books, you can do it electronically using spreadsheets, or you can use an accounting software program. One of the advantages of using accounting software is that you don’t have to go to school to learn how to use it; it will be the most efficient choice for your company if you’re not an account.

You don’t have to be an Accountant

A great solution for your accounting problem would be inBOLD Solutions accounting software. Accountants and chartered accountants have helped us develop the functionality and flow of our accounting system allowing you to generate accurate results. The best thing about our system is that you don’t have to be an accountant to use it. It is simple to understand and easy to use. We also have several video tutorials online and user guides to show you how to use the software in addition to having a technical support team that is always happy to assist. You can even try it for free at

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