Business entrepreneurs should not only have skills in creating the best products and services but also know the basics of bookkeeping. This will help you understand what are the accounts your bookkeeper uses in order to organize your finances.
To help you out, we’ve got you few bookkeeping basics that cannot be ignored.
1. Cash Inflow & Outflow
Being the business owner, you should be well aware of the cash inflow and outflow from your business’ cash account. All the major business transaction pass through this account. Once you start keeping a track of the cash account, you’ll be able to know if there are any discrepancies.
2. The Inventory Account
Inventory, as suggested, is the product that you have in stock and needs to be sold. The profit gained in return should be carefully tracked and counted. By manually counting the inventory by hand will help you keep on updating the numbers that you have recorded in the book.
3. Payroll Expenses
This is one of the most important accounts that you should have a basic knowledge of. In order to meet the tax and other government reporting, it is important to keep the account updated regularly.
4. Loan Payable
Keeping a track of the loan account will keep reminding you what your business owes and how much amount is due to be paid.
5. The Sales Account
Knowing the best of your sales account will help you keep a track of the incoming revenue from the products you are selling. To know where your business stands, it is important to record sales in a timely and accurate manner.
For further information on accounting bookkeeping services, contact us at http://profac.ca/contact-us/ Do you want to hire a professional bookkeeping service, call us at (587) 557-1625