TRACK AND YIELD Running your own business means keeping a record of every transaction. Here's how a bookkeeper can help T he science of bookkeeping is quite simple - it's essentially the recording of financial transactions within a business, and as such is part of the accounting process. For a small one-person start-up, this could be as straightforward as recording transactions as you pay bills and make deposits into your bank account. The system is more involved for larger businesses or enterprises, but the end game is the same. Bookkeeping isn't the same as accountancy. Whereas a bookkeeper keeps a log of financial transactions, on paper or electronically, an accountant takes those records and analyses them, prepares reports 66 and interprets any financial information on behalf of the company. One of the first decisions you'll need to make is whether to use single- or doubleentry bookkeeping. The former is a simple system where you record transactions in a revenue and expense journal. Double bookkeeping involves making at least two entries for each financial transaction - a debit to one account and a credit to the other. This system is best for medium or large companies with more complex needs. Here we take a closer look at what's involved - and how to avoid costly mistakes. Billing for goods/ services sold When you sell a product or service, you need to raise an invoice to send to your client. The details of this should be recorded in a journal or daybook. Recording receipts It's essential to log every receipt that passes through your business. It's good practice to make notes on receipts as to their business purpose, especially for entertainment and dining expenses. And don't get rid of them once you've claimed - expense receipts need to be kept for six years, or five if you're a self-employed sole trader. Scan them and back them up online to reduce paperwork - you don't need a paper copy.