An Easy-to-Use Manual Bookkeeping System

It doesn't always make sense to use a software program like QuickBooks. If you are a very small business or simply spreadsheet challenged, a manual bookkeeping system may be in order. Using this simple process, you can set up a basic bookkeeping system in just a few hours.

First gather together a few supplies:

• One-third tab file folders with metal prong fasteners on the front and back covers. These folders should be in a distinct color so you can differentiate them from your general files.
• File-folder labels.
• Two-hole puncher.

First take a file folder with metal prongs, label it "Bookkeeping" with the current month and the year. At the top of its left side, label it "Income." Label the right side of the folder "Expenses."