How should a sole proprietorship form of business organise its account?

Answer 1

Depends on the business, If you are a tradesman consider yourself group 1. If you are a merchant you would be group 2. If you are a professional: ex. Dr., Lawyer, Finance man, you are a group 3.

Group 1: Record each job, note expenses and total pay.
Group 2: Record all goods you have to stock and expenses like advertising and all income.
Group 3: Be certain to record all expenditure of money, ex. $2.00 cup of coffee with a client, taxi fare to a meeting etc.. Record all payments of income.

As a bookkeeper, your business can be presented in proper light if all the incidental happenings are recorded. Fictitious claims are the golden road to prison, DON'T FOLLOW THE YELLOW BRICK ROAD. Most people believe that a $5.00 expense will not amount to a hill of beans if your income is $1,000 during the job.

That is a MYTH that the tax man would like you to believe.

Answer 2

I suggest that you go to a short accounting course and buy an accounting package which suit your company. It is much better to start your business on a proper foundation and this means a proper accounting records. Good Luck

Answer 3

If I'm understanding your question, then I would recommend using excel spreadsheets - don't bother with expensive software unless you've got a huge turnover. Just keep an excel spreadsheet for income and one for expenditure. Keep all your receipts!

Answer 4

you might want to consider incorporating your company to protect yourself from liability. good luck.