One of the main foundations (pillars) of building a business is the finance.
Cruising around the online world I have met some blogging friends who are dubious as to whether or not they can organize and control their own bookkeeping.
We Bloggers are adept at learning, so why not take this one step further to enhance your blog business and keep track and trace of your hard earned cash.
This really is not a big deal, so keep it simple (KISS).
A – Accept this is your Accounting System and it does not have to be onerous.
B – Banking, keep a Beady Eye out for all movements on your statement.
C – Carefully Clip Receipts to Bank Statements – Proof of Payments and Proof of Receipt of Payment.
D – Don’t pay out Money online before checking the safety factor.
E – Efficient and Easy Method to keep up to-date.
F – Finance, knowledge of your Income and Expenditure, the building blocks of Business.
G – Get an Easy System Setup.
H – Help is Always Available=F1.
I – Ignorance can Cost.
J – Jokers get burned
K – Killer Fraudsters are out; Keep Your System Updated against Spyware and Malware.
L – Learning and Discipline are essential.
M – Maintenance of Bank Accounts and Filing given structure to makes life easy.
Hey we are not doing the ABC – it is the 123 that we need to get into! Bookkeeping, many are saying how?
Where to start? “Open Office dot Org” This is freeware if you don’t have Microsoft or Lotus SmartSuite.
Plan the Categories for your Tabs. I work with Microsoft Excel, I have worked in Lotus 1-2-3 and have found Spreadsheets work almost identical. Take one step at a time, and in no time at all you will be up and running.
Before doing anything open the Spreadsheet and give the file a name. Do a “Save As”, usually a default name such as “Book1.xxx” will open. Alter and name your Spreadsheet, then save it in a folder of your choice such as “Banking”. Please remember to hit the save button every couple of minutes, that way you won’t lose information.
OK back to Categories, We are creating a simple Spreadsheet with five columns. When we open a Spreadsheet, along the top of the table is ABC? (LOL) – down the side cell lines numbered 123?. We will build a Date, Description, Debit, Credit and Total as “Categories”.
On the Top – Cells (ABC)- hover your cursor over the cell “A” on the right hand side of the box, ? symbol shows “click and drag” this will expand the cells to make them larger or smaller.
Keep it simple to start, make a “Description” Tab in Cell “A” of about 25 – 35.
You can use the above method or Right Click in Cell “A”, a drop down menu will appear, go to “Column Width” and type in the size i.e. 35, and click the OK button.
For Cell “B” – “C” and “D” we will be using numbers, repeat the above, I have found the size for the Cell of 12 is sufficient (remember you can adjust at any time). So run your browser over B-C-D, right click, go to “Column Width” and put in the number 12 then click OK.
We want to add a Date field to our Categories before the Description (you can add or delete columns as you need-require). Right Click in “A” Column for the drop down menu, click on “Insert” and another cell “A” will pop up, the previous “A” column, will become “B”.
Now in like manner we can edit the cells, “A” is going to be the date; right click in the box “A” for the drop down menu, select “Format Cells” – the Tab Section is “Number” with a variety of choices, since we wish to have a date, select the style of date and click OK.
(While we are here, there a more tabs available to explore, Right Click in a Cell>Drop Down Menu>Format Cells> “Number” or “Alignment” “Font” “Border” “Fill” and “Protection”.)
“B” = As above right click in the tab “B” select “Format Cells” then “Number” and select “General”.
“C-D+E” Cells are all for currency. Drag your cursor over the three columns this will highlight them, right click for drop down menu “Format Cells” > “Number” > “Currency”. Choose how many decimal places you wish to use and the Currency of your choice. At this point you can also select a minus (-) for credits to reflect in red or black print. Making the Credit Column a minus helps with formulae further down.
You have a spreadsheet basically set up, in line 1 you can input your Headings – Date (A), Description (B), Debit (money coming in) (C); Credit (outgoing cash) (D) and your Balance/Total (E).
Symbols may be used=Automatically Adds; Click in the Empty Cell at the bottom of a column, use this symbol and highlight the numbers above.
If you use a “running” total – For example: in line 2 “Total” in column “E”, you can input your bank balance. Line 3 will reflect your first payment out, so in line 3 column “E” write a simple formulae of =(E2+C3+D3) which will calculate the balance automatically. We did not use the (-) minus sign in the set up for column “D” – formulae will be =(E2+C3-D3). Copy and paste (Ctrl-C on cell with formulae, then highlight column below and Ctrl-V) this saves time. Any hassles, click on F1=Help, we may require a tweak =SUM(E2+C3+D3) or @SUM or we may be required to put “0.00” value in blank cells!
Congratulations you have set up a simple spreadsheet, trust you have enjoyed this first step to the start of basic bookkeeping – keep your head above water!