- Basic small business bookkeeping how to#
- Basic small business bookkeeping free#
It is represented in double entries as $200,000 debit to cash and $200,000 credit to equity.
According to the above double entries, invest $200,000 means increase cash and at the same time increase the equity of the company. Put those in each column of Google sheet and use “borders” and select the entire required space to create the table. The main details that should be represented in primary accounts are date, description, debit, and credit amount. The opening balance of the assets is recorded on the debit side meant left side of the T accounts and the opening balance of liabilities and equities are recorded on the credit side meant the right side of the T accounts. These accounts or books are the first steps of recording the financial transactions of a person or an organization according to basic accounting concepts and standards. You can style the table by adding it a border. This means accounting equation is tallied. So now the double entry of this transaction is complete and when you tally/sum the debit and credit records the result is 0. On the other hand, that transaction impacted to increase my equity position in the business (business owes this money to pay me back someday) so we credit the equity account by $200,000. 
I Invested $200,000 to the business means it affected to increase the money available to business from $200,000 therefore, we debit the cash by $200,000 since cash is an asset. Go to the below row and type “Equity” under the “Journal entry” column and put “$200,000” under the credit column ( Credit entry). In this case, put “1” under No heading, put “” under Date, put “Cash” under Double Entry column and put ‘’$200,000” under Debit column ( Debit entry). Fill in the transaction details under each heading like: I Invested $200,000 to the business. Add column headings to the top of journal entry table as: No, Date, Double Entry, Debit, and Credit. Type your company name in the first cell (Eg: 1A) and merge cells at the top. It’s automatically saved to your Google Drive now. Go to the top of the Google sheets and rename the “Untitled spreadsheet” into “Journal entries” by typing on that blank space. Go to Google sheets, and make a blank sheet. Below guidelines will come handy to you when recording journal entries with Google sheets. This is the primary base of recording all financial transactions of a company. * Decrease in revenue value > Decrease in the credit balance > Debit the transaction value Journal entries * Increase in revenue value > Increase in the credit balance > Credit the transaction value 
* Decrease in liability value > Decrease in the credit balance > Debit the transaction value * Increase in liability value > Increase in the credit balance > Credit the transaction value * Decrease in equity value > Decrease in the credit balance > Debit the transaction value
* Increase in equity value > (Results in) Increase in the credit balance > (Then) Credit the transaction value
Basic small business bookkeeping free#
For small businesses this application is perfect because it has all the required functions and it’s totally free to use. Google sheets can convert data into charts, formulas, graphs, and tables similar to Microsoft Excel.
You may be familiar with other applications in this suite like Google Docs, Google Drawings, Google Slides, Google Keep, and Google Sites. It’s part of a suite of FREE online applications made by Google. Google sheets is a spreadsheet program similar to Microsoft Excel. Let’s first understand the program we use for this bookkeeping exercise before diving in to the world of accounting theory.
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