Bookkeeping for Small Business: Your Ultimate Resource
As a small business owner, you know that your finances are a top priority—and therefore, your bookkeeping processes are too. Although sometimes grouped within business accounting, bookkeeping itself is a core part of managing your finances and ultimately promoting the growth and success of your business.

If you’re new to small business bookkeeping, however, you might be wondering where to begin: What exactly is bookkeeping for small business? How does it work? What do you need to know about the fundamentals of bookkeeping?

This small business bookkeeping guide is here to help. We’ll provide a bookkeeping overview—discussing what it entails, why it’s important, and how you can manage bookkeeping for your small business. Let’s get started.

Small Business Bookkeeping: The Basics

Bookkeeping: What exactly is small business bookkeeping?

Overall, bookkeeping can be defined in a variety of different ways. In essence, though, small business bookkeeping involves all of the processes necessary to ensure that your business has an accurate record of its financial activity.

Traditionally, bookkeeping involved physically recording a business’s day-to-day transactions in a journal or daybook, hence the name “bookkeeping.” However, as technology has developed and many businesses employ the use of spreadsheets, accounting, or bookkeeping software, the process has developed as well. Therefore, bookkeeping can encompass a variety of tasks—from basic data entry in a software platform to working with CPAs—but at the end of the day, small business bookkeeping is the backbone of your accounting and financial systems.

What Is Involved in Bookkeeping for Small Business?
With this overview in mind, let’s explore some of the general processes that are typically involved in bookkeeping for small business.

As we mentioned, with the development of bookkeeping and accounting technology, bookkeeping tasks have become much more automated, but this doesn’t make it any less important to manage them and ensure that everything is operating properly.

Therefore, whether you plan on performing your small business bookkeeping yourself, or outsourcing to a professional, you’ll want to know the details that can encompass this financial process.

  • Setting up and streamlining accounting software
  • Ensure your companies daily transactions are captured and filed correctly
  • Handling accounts receivable and payable
    • For accounts receivable, this may mean estimating the eventual value of a finished project, preparing and sending invoices, and providing statements—essentially, ensuring your business is paid for your goods or services.
    • For accounts payable, will include making accurate, timely payments to your vendors, lenders, and landlords, as necessary.
  • Setup a payroll system for salaried employees

We keep our clients informed, ensuring their annual financial due-diligence is taken care of…

Data Capturing

  • Data capturing of all sales invoices and daily expenses into accounting program.
  • Reconciliation of debtors/customers and sales follow up calls.
  • Creditors/suppliers reconciliation, reporting to management and subsequent payment release.


Bookkeeping usually entails reviewing all the data that was captured during the month to see if it was captured to the correct account.

  • Review of daily transactions per GL account
  • Processing of General Journals to rectify any errors
  • Print out accounting reports to prepare the monthly management report

Monthly Management Reports

We provide each of our clients with a management report which states the companies:

  • Cash flow
  • Profit and Loss
  • Owners equity
  • A detailed report of the monthly income in relation to the expenditure

Other Services that we offer:

Financial Statements

Financial statements are usually prepared within four months of the companies financial year end.

If your companies financial year end is in February, you should have your financial statements prepared by June.


We are registered tax practitioners, we offer the following tax services:

  • Personal Taxation
  • Corporate Taxation
  • Provisional Tax
  • Payroll Taxes
  • Value Added Tax
  • Tax Clearance Certificate

CIPC Annual Return

A companies Annual Return becomes due on the anniversary date of 1st registration with CIPC.

Companies have one month to submit their CIPC Annual Return until CIPC impose a penalty for non-submission.

Managing Financial Statements and Documents
Finally, a core facet of bookkeeping for small businesses will include managing important accounting documents and maintaining the information, as we mentioned—transactions, assets, income, expenses, etc.—that are used for financial statements like the income statement, balance sheet, and more.

The individual or service responsible for your bookkeeping will ensure that all of your documents are organized, stored properly, and accessible for any other team members or consultants who need to use them.

Moreover, although all of these elements are typically included in small business bookkeeping, the extent of the process will ultimately depend on your specific organization. At the end of the day, therefore, your bookkeeping boils down to any and all of the processes required to ensure that your finances run smoothly and efficiently.

Why Bookkeeping for Small Business Is Important
As you can see, the line between bookkeeping and accounting can be thin, and not always clear, although there are distinctions. Nevertheless, it’s important to ensure that you don’t solely focus on “accounting” and forget about bookkeeping for your small business.

Unfortunately, a common mistake that business owners often make is designating bookkeeping as simply, “data entry,” and hand it off to an employee who has no prior bookkeeping experience. Even though accounting software can make bookkeeping processes much easier than they have been in the past, it’s still essential that your small business bookkeeping is handled properly.

Bookkeeping helps you separate your business and personal finances. Creating this separation is not only crucial to the growth and success of your business but also ensures that you’re not personally held liable for any debts or issues related to your business.

Bookkeeping helps prevent and identify accounting or financial errors. By managing your transactions and reconciliation, you can more easily identify a mistake that’s been made by your bank or through data entry—instead of finding these kinds of mistakes when they’ve already impacted your finances.

As we mentioned above, bookkeeping helps you put your business in the best situation to streamline your tax processes, receive the maximum deductions, and work efficiently with any tax professionals.

By consistently maintaining your financial data, bookkeeping can give you a sense of your business’s progress and financial health—allowing you to identify ways you might be able to improve or processes you want to change. Overall, your small business bookkeeping can help you plan and set a path for financial growth.

Finally, the organizational element of bookkeeping is particularly important when you’re trying to get a business loan, acquire another business, buy new equipment, or take any other significant action with relation to your business. With all of your financial information stored, documented, and properly managed, the process of applying for a loan, for example, will be much easier, as you’ll know that your documents are accurate and you’ll quickly be able to find any information you need.

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File Description Date added File size Downloads
pdf Bookkeeping to do list Download this simple guide to assist your company with what your should be doing on a daily, weekly and monthly basis.
October 23, 2021 2:22 am 57 KB 13
pdf JCS Bookkeeping Requirements Download our list of requirement for compiling your companies books.
October 23, 2021 2:18 am 173 KB 14