There are two components in a recording and accounting system. The first is bookkeeping, which involves recording income and expenses in journals or in their computer equivalents. Most small businesses can keep necessary records by using account books or a personal computer with a bookkeeping program, and files to store receipts, purchase orders, inventory sheets and other records. But if you own a computer, a bookkeeping program could be ideal for you. You can purchase a program that will handle accounting, checking, billing, purchasing and inventory and produce reports for management and tax purposes.
Computers are also useful for letter writing and other routine business tasks.
As your business flourishes, you will need to computerize. The modern cash register is also computerized. An advanced system includes a bar code reader and can be integrated with your inventory system. Most small businesses do not need a complicated record-keeping system. Keep records you need for tax purposes and those that tell you how the business is progressing.