Accrual-Based Accounting This method records both invoices and bills even if they haven't been paid yet. This is a highly recommended method because it tells the company's financial status based on known incoming and outgoing funds.

The single-entry system of bookkeeping involves recording only one side of the transaction or activity. It maintains only the purchases, cash receipts and payments and sales. It is used mainly by small businesses, which have minimal transactions.

Bookkeeping includes everything from basic data entry to tax prep. Let's look at the core jobs and see how they're done. Small businesses can do their own bookkeeping or outsource to professionals. We look at how to find a good balance.

ZipBooks is easy-to-use and intuitive accounting software with a clean interface and a few plan options, including a free accounting plan. The free plan allows you unlimited invoices and clients plus the ability to integrate with Square or PayPal to accept online payments.