Here’s the problem with Quickbooks, or any other software solution for bookkeeping: it’s deceptively simple.
When I say “bookkeeping system,” I mean the manner in which you record the transactions that take place in your business.
In the last part, we talked about proper documentation of business income and expenses. Nearly 100% of the time, the first question people ask at this point is: do I have to keep all that paper, or can I scan the receipts?
Recordkeeping refers to recording the transactions that take place within your business. Documentation refers to the proof of the numbers in your recordkeeping system.
A few years ago I was giving a presentation about taxes and accounting to a group of business owners. One of the people in the audience asked: “Is there an income level where you should start using Quickbooks? Like $50,000?”
Can a corporation use a spreadsheet instead of a traditional general ledger to keep the corporate books? There are certainly corporations that think they can. I know many of my tax and accounting brethren are shouting “NO!” In response to this question. My answer is more on the fence. It depends on what your corporation is up to.
Should a Business Owner Keep Their Own Books? I say yes, but know your limitations.