How do I start with my own accounting?

Starting with accounting, if you set your mind to it, isn’t all that difficult. There are certain things that need to be done and it’s best to do them properly, at the right time and keep consistency in all things.

Your list of actions is as follows (note that the list is not exhaustive):

  • Deciding on the form you’re going to keep your accounting – in an accounting software or some other electronic form or on paper;
  • Listing your main transactions you’re planning – purchase of goods and services, sale of goods and services, dealing with cash etc.;
  • To all of the identified transactions deciding on the accounting entries going to be used – by debits and credits with all relating accounts for specific transaction types;
  • For all the entries define documents being used – type, formed by what and who, obtained how, digital or on paper etc.;
  • Describe how and where the documents are being stored – digitally or on paper, in archives;
  • Authorization procedures if applicable for certain types of transactions.

And about all of this it’s strongly suggested and in some countries even obligatory to keep a document including all the procedures deemed necessary for specific accounting areas relevant to your company (i.e. dealing with cash, bank accounts, receivables and so on).

This set of internal rules is about what sort of documents are required for entries, to which accounts entries are done, when are they done etc. It’s mostly meant for you so you’d have a structure to refer back to remind yourself how you deal in certain areas – mostly to ensure consistency and compliance with regulations and accounting rules.