This simple spreadsheet in Google Docs allows you to easily and quickly keep the books for a simple business.
1. In the Simple Accounts page, enter your beginning bank balance in the “Cash” column under “Opening Balance.”
For each transaction:
2. Enter the date under the “Date” column.
3. Enter a description in the “Description” column. If the transaction is a check written, include the check number.
4. Enter the amount of the transaction under “Cash.” Receipts are positive and payments will be negative.
5. Classify the transaction by entering the amount in the appropriate column (“Sales,” “Advertising expense,” etc.)
Go to the following IRS instructions for more information about classifying expenses.
6. If the first column says “OK,” then you’re in balance. If it says “Oops,” double-check your numbers.
To check out your cash balance and profitability, click on the “Simple Report” tab below.
Take proper precautions to keep your account information private.
Here is a video to demonstrate how to use the spreadsheet (added November 13, 2011)