ACCOUNTING PLAYS AN IMPORTANT ROLE IN ORGANISING YOUR BUSINESS. WITHOUT A PROPER ACCOUNTING, YOUR BUSINESS MIGHT COLLAPSE WITHIN THE FIRST YEAR OF EXISTENCE.
WELL, I KNOW THAT MOST PEOPLE BECOME AFRAID WHEN THEY HEAR THE WORD “ACCOUNTING”. THEY ASSOCIATE THE ITEM WITH DOUBLE-ENTRY ACCOUNTING, CALCULATING DEPRECIATION, AND OTHER HORROR IMAGINATIONS.
BUT FOR YOU AS OWNER OF A MICRO OR SMALL BUSINESS, THAT DOES NOT NEED TO BE THE CASE, AT LEAST NOT FOR THE BEGINNING. WHEN YOUR BUSINESS GROWS, YOU MIGHT NEED TO OCCUPY YOURSELF WITH ISSUES LIKE SPROGRAMMES ON THE INTERNET. OR YOU CAN USE SOME GUIDES OF HOW TO USE MICROSOFT EXCEL FOR ACCOUNTING PRACTCES.
BUT LET US GET BACK TO THE START OF OUR ACCOUNTING. FOR THE BEGINNING, IT IS SURELY ENOUGH TO USE A SIMPLE INCOME/EXPENSES METHOD TO SEE AT THE END OF THE MONTH WHETHER YOUR BUSINESS MADE A PROFIT AT THE END OF THE MONTH, OR A LOSS.
YOU MAKE A LIST WHICH UOU SEPARATE INTO THREE PARTS UP DOWN. ONE SMALLER PART ON THE LEFT IS RESERVED FOR THE DATE, THE NEXT PART WILL SHOW THE INCOME (KEEP IN MIND THAT YOUT INITIAL WORKING CAPITAL IS YOUR FIRST INCOME). THE INCOME MUST CONTAIN THE AMOUNT YOU RECEIVED, AND FOR WHAT YOU RECEIVED IT THE LAST COLUMN IS FOR THE EXPENSES AND MUST CONTAIN THE AMOUNT OF EXPENSES AND FOR WHAT. FOLLOWING IS A SAMPLE:
| DATE | INCOME (IN GHC) | EXPENSES ( GHC)I |
| 1ST JANUARY 2025 | 10,000 INITIAL WORKING CAPITAL | 2,500 RENT |
| 2ND JANUARY 2025 | 5,000 PURCHASE OF GOODS FOR SHOP (SPECIFY) | |
| 3RD JANUARY 2025 | 1,575 SALES OF GOODS ON THAT DAY (SPECIFY; GHC 500 PROFIT) | |
| AND SO ON | AND SO OM | |
| TOTAL JANUARY 2025 | TOTAL INCOME AT THE END OF JANUARY | TOTAL EXPENSES AT THE END OF JANUARY |
| TOTAL JANUARY | INCOME MINUS EXPENSES |
