These Are The Simple Ways To Make Better Bookkeeping For Business

The bookkeeping process starts from collecting all existing transaction evidence in the form of proof of payment, proof of receipt, and other evidence related to the business we are running, proof of payment can be in the form of receipts, certificates, agreements, notes, etc. After we collect it now identify the evidence so that the validity of the value and the status of the transaction is certain. Aside from that, Perhaps you also need to hire myob bookkeeping services in order to make better and more effective bookkeeping for your business myob bookkeeping services.

Creating a Transaction Journal

After the transaction process is analyzed, the next process is to record it in the transaction journal, the process of recording transactions can be done when there is a new transaction or we collect in 1 new day we record it, but it is certainly more efficient recording process every transaction. It reduces the risk of making any mistake.

Transferring Transactions to the Ledgers

After the transaction is complete, we record it in this transaction journal, the next step is to move to the ledger, in the journal all existing account accounts are recorded, both cash transactions, accounts receivable, debt, payments, etc. all recorded, but in the big book we will group accounts according to the type of transaction.

Make a Trial Balance

Making trial balance is usually done every time the book closes. The process of making a trial balance is intended to ensure that the value of the type of debit balance account is the same as the type of account with a credit balance (balanced). Or as a whole, the amount of the debit transaction value is the same as the credit transaction. It can be said that the final balances with a debit balance account are added up, and credit balance account balances are also added up, then compared. If the value is the same, it means balance (correct).

Financial Reports

It’s starting from collecting evidence, recording it to a journal, posting it in a ledger (grouping accounts), making a trial balance so that the debit and credit sides are balanced, this is finishing the Financial Report. Financial statements are the most vital side of the business that you run, with your financial statements will be quick in making decisions to move your business forward.

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