Best Bookkeeping Services in Brookhaven, NY

TYPES OF BOOKKEEPING SOLUTIONS If you just started out or you have a small business with very few financial transactions, you may choose to do your own bookkeeping. Here are two bookkeeping solutions that you may use to record your transactions. You can opt to do it the traditional way (books and papers) or using bookkeeping software. SINGLE-ENTRY SYSTEM Small businesses that have no or few employees and follow the cash basis accounting may go for single entry bookkeeping. It is the simplest form of bookkeeping that records the date, description, transaction value, income/expense, and balance. You will find single entry bookkeeping easy to implement but only as long as your business doesn’t have complicated transactions. DOUBLE-ENTRY SYSTEM Businesses that follow the accrual accounting system will find double-entry bookkeeping to be the most appropriate to record complex transactions. It is an accounting method that records a financial transaction in at least two accounts. For example, if you take a loan of $30000, your asset account and your liabilities must be increased by $30000. This method of bookkeeping follows the basic accounting equation: Assets = Liabilities + Equity. HIRING AN ACCOUNTANT /BOOKKEEPER FULL-TIME The intricacies of bookkeeping often push small business owners into hiring a bookkeeper or an accountant to work for them full-time. But this move may attract a lot of unnecessary extra expenses, for example, office equipment, insurance, overtime pay, etc.