Set up bookkeeping

Your books should be set up with various accounts in order to group your income and expenses. The broad categories of accounts include:

- income
- expenses
- assets, liabilities and equity

Within these accounts there are a number of subaccounts.

The best way to manage all of this is with accounting software that will allow you to manage all of your financial activity and produce current and accurate financial reports, such as a Profit and Loss Statement, Balance Sheet, and Cash Flow Statement. Speak to your accountant, financial adviser or tax preparer to see which software they recommend or can work with digitally.