Chapter 3

How to do bookkeeping data entry

Data entry is the foundation of bookkeeping. Enter the numbers right and you’ll learn exactly how the business is doing.

What is data entry?

As the name implies, data entry is the process of recording financial transactions – money coming into and going out of the business.

Why does it matter?

If you’re not keeping a close eye on money in, money out, and things like debt, you’ll soon lose sight of how viable and profitable your business is.

How to do data entry

For each sale or purchase, you generally want to:

  • record details such as: the value and date of the transaction; who it was with (though that’s not always necessary for retail sales); what was bought or sold
  • assign that transaction to the right account in your ledger

Purchases and sales data are often lifted from places like point-of-sale systems, business bank statements, invoice records, and receipts. You’ll probably need multiple sources to get all the information you need.

Modern bookkeeping data entry

Nowadays you can bypass a lot of the manual data entry by linking all your business systems together so that information flows directly into your books from sales systems, bank accounts, and receipt scanners.

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

How to do bookkeeping

Bookkeeping includes everything from basic data entry to tax prep. Let’s look at the core jobs and see how they’re done.

  1. How to do bookkeeping

    Small businesses can do their own bookkeeping or outsource to professionals. We look at how to find a good balance.

  2. Setting up a chart of accounts

    Stepping up to do the bookkeeping in a new business? You may have to set up the chart of accounts. Let’s look at how.

  3. How to do bookkeeping data entry

    Data entry is the foundation of bookkeeping. Enter the numbers right and you’ll learn exactly how the business is doing.

  4. How to do bank reconciliation

    Humans aren’t always perfect at punching numbers. Bank reconciliation is a way to do quality control on your books.

  5. How to manage accounts receivable

    Many businesses issue invoices, and those invoices need to be tracked. Learn how to manage accounts receivable.

  6. How to manage accounts payable

    Paying bills isn’t glamorous. But they’re debts and need to be dealt with. Let’s look at how to manage accounts payable.

  7. Creating monthly financial reports

    There are dozens of financial reports that you could create. But there are some monthly mainstays that bookkeepers love.

  8. How to do payroll

    If all you had to do was pay staff, it would be easy. But there’s more to it than that. Let’s look at how to do payroll.

  9. How to prepare tax returns

    Tax returns can be hard for small business owners. There are deadlines to make, and rules to follow. Let’s take a look.

  10. Using bookkeeping software

    Whether you do a lot of your own bookkeeping or outsource it all, software can help you save your time and budget.

  11. Using professional bookkeeping services

    If you don’t have the time or confidence to take on bookkeeping, a professional can help. Let’s look at what they do.

Download the guide on how to do bookkeeping

Learn about the eight core bookkeeping jobs, from data entry to reporting and tax prep. Fill out the form to receive the guide as a PDF.

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