Improve Your Bookkeeping System

Although you might make use of a single-entry bookkeeping system, double-entry bookkeeping is the usual method of keeping business records.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

The bookkeeper (most likely you, for your first few years in business) enters transactions first in a journal, and then posts monthly totals to the appropriate ledger accounts. Five categories of ledger accounts are: 1) income; 2) expense; 3) assets; 4) liability; and 5) net worth. Income and expense accounts are closed each year; assets, liability and net worth accounts are maintained on a permanent and continuous basis.

Excerpted from Starting a Home-based Business

More from Entrepreneur

Dustin's experience and expertise can help you monetize your message, build a marketing strategy and connect with influencers.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur