Bookkeeping For Dummies
Many of a business has collapsed simply because they lacked organisation in their basic bookkeeping business practices. Don't be and accounting dummy! As a small mail order business you don't have to really do much in the beginning. Here is how to set up basic bookkeeping practices from ground zero: 1. Take out a hanging file folder and a label of any kind. (Hanging folders and labels for them can be purchased at K-Mart, Wal-Mart and any office supply store.) 2. Type or hand print "Receipts" on the label and place it on the hanging folder.
3. Now, place 5 MANILA file folders inside the hanging file folder (which you labelled "Receipts") and label each of the manila file folders with the following headings: a. Advertising b. Postage c. Office Supplies
d. Utilities and Rent for the Office
e. Miscellaneous
You now have one large hanging file folder with 5 separate manila file folders inside it. Carefully place your hanging file folder in your metal file cabinet or cardboard banker's box. (A banker's box can be purchased at any office supply store also and normally cost around $4.)
Now, wasn't that easy? Some of you reading this will think that I am attempting to insult your intelligence. This is NOT my intention. This report is broken down in a simple, step-by-step way so everybody can understand it _ regardless of their previous knowledge and experience. Remember, some people have never worked in an office their entire life. What seems simple and accepted to some of us, may be something another person would never have known.
Okay, let's go back to where we were. You now have one master file completed and we're ready to make another just like it. This time we'll name the hanging file folder "Income" and label 3 manila folders inside it with the following headings: (A) Completed and Shipped Orders (B) Inquiries and Correspondence. (C) Open Orders Still Pending.
See how easy? From now on, you simply make another folder as the need arrives and you're files will always be easy to maintain. (Once you get this concept down pat _ you can easily think about getting a computer. A computer organises its information in the SAME manner. Believe me - this same system works! You'll be amazed at how many mistakes it
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