How to Teach Bookkeeping

Teaching a new employee bookkeeping can be a challenge.

If you own a small business, teaching a new employee your bookkeeping system can be a challenge. Why? Small business owners usually have their own unique way of keeping track of their financial records. As a result, translating this system to another person is often difficult. Yet, it isn’t impossible if you follow a few steps. This article will explain a few steps you will want to use if faced with this task. They will help you get the optimum bookkeeping results from a new (or old) employee.

Things You'll Need

• Basic knowledge of bookkeeping

Instructions

Teaching Bookkeeping

1. Show the new employee the location of your bookkeeping tools. These tools are ledgers, files and computer programs. The new employee should be aware of the location of any tools he needs in order to do his job.

2. Instruct the new employee on how and where you keep you receipts. Do you place receipts in a file alphabetically? Do you throw away receipts over 60 days old? Do you keep copies of “scanned” receipts in a computer file? The answer to these questions should be told to the new employee.

3. Tell your new employee where expenditures and payments are entered into your books. This is a basic aspect of bookkeeping that individuals often mess up because of a lack of diligence. As a result, it’s important that you make it clear where you want this information entered into the books and how many times a day.

4. Give your new employee finished copies of financial reports and, then, show him how to do them. This may sound like you are working backwards, but it’s best to show a person new to your bookkeeping system how you want a spreadsheet to look prior to the actual work. It will let the new employee now as you train him if he is on or off track. It will also guarantee that you get quality work in the future.

5. Sum up all the duties you expect from your employee in regards to the bookkeeping. If all you want is the receipts to stay organized so you can tabulate or enter them later, let the new employee know. On the other hand, if you want the employee to enter figures, organize receipts and run reports, let him know and offer up a summary in writing. It is the easiest way to keep you both on the same page.

Tips & Warnings

• Don't assume the person you are training understands what you want without you telling him first.

• During the first few weeks, keep track of your new employee's work in order to avoid any BIG mishaps.

Resources

• Bookkeeping Basics