Bookkeeping basics for small businesses

What the bookkeeping basics for small businesses gives you

Good books do not need to be complicated. This guide explains what bookkeeping is, the records every small business needs, how money in and out are recorded, a simple daily and weekly routine, how to separate personal and business money, and how the records feed tax returns, loan applications and decisions.

Who it is for

Shop owners, freelancers, startups and anyone who keeps their own books or wants to understand what their bookkeeper does.

How to use it

1. Read the guide once to see the full picture.
2. Set up the records listed in the starter kit.
3. Follow the daily and weekly routine for a month.
4. Review your records at month end using the checks.
5. Keep a signed or dated copy with your records, so you can show what was agreed or done.

What is inside

• The records every small business needs
• Money in, money out and balances
• A daily and weekly routine
• Separating personal and business money
• Month-end checks

The document is a ready-to-print PDF with these parts: What bookkeeping is, The starter kit, A simple routine, Keep business and personal money apart, Month-end checks. It is laid out for A4, with the headings, tables and tick boxes already in place, so you can print it and fill it in by hand, or type into it with a PDF editor.

Tips for getting it right

• Record transactions the day they happen.
• Keep every receipt, even for small amounts.
• Use a separate bank account and till for the business.
• Reconcile your cash and bank every month.

Why it helps

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Can I edit it? It is a PDF, so it is meant to be printed and completed, or filled with a PDF editor. If you want to change the wording, copy the text into Word or Google Docs and adapt it to your business.

Is it legal advice? No. It is a practical starting point written for Kenya. Rules change, so check the current position and ask a professional where the stakes are high.

Will it work on my phone? Yes for reading. For filling in and printing, a computer or a PDF app works best.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Vat calculator. See more accounting templates or ask us for a custom one.

This document is general information, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Calculator
• Guide: How to set up an M-Pesa till or Paybill for your business and account for it
• Guide: How KRA uses data matching and what it means for you
• Guide: How to protect your business from fraud and theft
• Another template: 13-week cash flow forecast
• Another template: Accounts receivable ledger (up to 1,000 invoices)
• Another template: Bank balance tracker

Need something different? Request a custom template, browse all guides or see every Excel template.