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Small Business Accounting
The minimum a shop, agency or small manufacturer needs to stay compliant and still know how the business is doing.
The monthly minimum
Issue numbered invoices, bank every receipt, keep bills for every payment, reconcile the bank once a month, file GST and TDS on time, and look at debtors ageing. That is the whole list. A business doing those six things reliably rarely gets into trouble.
Cash flow, not profit #
Small businesses fail with a profit on paper because money is tied up in stock and receivables. Track how long cash takes to come back: days of stock, days of credit given, days of credit taken. Shortening the first two by a week is usually easier than raising prices.
What to outsource #
Data entry and reconciliation are cheap to hand over. Approving payments, setting prices and chasing customers are not — those stay with the owner.
What you will need
- Bank statements for all business accounts
- Sales invoice book or software export
- Purchase and expense bills, filed by month
- Stock position at the month end
- Loan and EMI schedules
- GST and TDS returns already filed
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