Wasseem Dirani Explains the Basics of Small Business Bookkeeping

Wasseem Dirani from Hamilton, Ontario, Discusses Bookkeeping

Should You Keep Your Own Books?

When it comes to bookkeeping, the first thing you have to ask is whether you should do your own bookkeeping. It is a consideration that many small business owners have to contend with, but for the majority, it is not a choice they can make. They don’t have the resources to outsource bookkeeping to a professional accountant. That is the main reason why most small business owners choose to do the accounting themselves.

Understanding Business Accounting

There is a reason why accounting is a major profession. It is challenging to do, and it is something that Wasseem Dirani advises you to avoid if you can. Most business owners do not have the needed understanding to manage their books well. They don’t know the ins and outs of bookkeeping, and it will turn into a nightmare for them if they aren’t careful.

Managing Your Cashflow

The big thing that bookkeeping helps to ensure that you understand how your cash business is going. You want to ensure that you’re always cash flow positive, and you can do that by balancing your books and doing things well.

Balancing Your Books

Wasseem Dirani from Hamilton, Ontario, on Balancing Your Books

Preparing Reports

Bookkeeping is also something that requires preparing reports. As a business owner, you should have many reports prepared for your business. It is a great way to help you understand what is going on to make changes better in the future. It will also require a lot of time and effort for you to figure it out.

Filing Your Taxes

Your small business accounting should also help you accurately file your Canadian taxes. The CRA is more likely to audit people with a small business, which means you need to be on the lookout for anything that could be used against you during this process. You have to ruthlessly remove anything that could potentially hurt you, which could create a lot of stress with your accounting situation.

Keeping Your Records

Bookkeeping should also include keeping accurate records for a long time. You never know how far back you will be audited, and you might need to provide documents in the future. By keeping accurate accounts, you will be able to stave off any problem from being audited by the government. It will also help you understand how your business is changing all the time.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Wasseem Dirani

Wasseem Dirani

Wasseem Dirani of Hamilton, Ontario, is the President of Taxes to Save. He and his company pride themselves in providing excellent tax consulting services.