Bookkeeping Made Simple
...... the hanging file folder "Income" and label 3 manila folders inside it with the following headings:
(A) Completed and Shipped Orders
(B) Inquiries and Correspondence.
(C) Open Orders Still Pending.
See how easy? From now on, you simply make another folder as the need arrives and you're files will always be easy to maintain. (Once you get this concept down pat -- you can easily think about getting a computer. A computer organizes its information in the SAME manner. Believe me - this same system works! You'll be amazed at how many mistakes it will help you prevent.)
Yes - bookkeeping is a very simple process. All you have to do is keep the system going. For instance, every order that I process, I completely finish before moving on to the next order. Example:
1. Mail is received and opened. As each piece is opened it is placed into individual piles. Orders with pre-payment are placed in one pile, information and daily correspondence in another, and so forth.
2. Each order that has been pre-paid for is processed first - with each one being processed individually to completion. (That means it is in an envelope, a label typed out and the completed order is ready to be mailed at the post office.)
3. During the process, the "date," "amount of check or payment" and "product ordered" is recorded on the outside of the envelope - making sure the customer's full name, address and telephone number (if available) is on the envelope too.
4. Just before closing up the office for the evening, the envelopes are then keyed into the database on our computer (you can substitute a computer for the hanging files in the beginning.) We record all the information that was written on the envelopes during the processing of the order. (Don't think you will remember "what" the order was. That thinking will open you up to make human errors.)
As your business grows, your understanding and abilities will grow also. At that time you can grow into a more sophisticated means of keeping the books.
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