Business people may often find it challenging to check or control financial transactions. A list of incoming or outgoing transaction records is undoubtedly necessary for the smooth running of the business.
Failure to control and check credit transactions will result in losses you cannot anticipate in advance.
Record all sales and purchase transactions
If you make a sale and purchase transaction, make sure and collect all evidence of the transaction, which can be recorded in the form of notes, struck, receipts, receipts, and so on. Try not to let anything be lost because if one is missing, it will make it difficult for you to make calculations later; if everything has been collected, you can complete a debit transaction and a credit transaction.
If everything has been collected, you can start grouping transactions, whichever is a debit or credit transaction.
If you are in which class the debit and credit transactions are, make a transaction journal. You will know what dealings you have done, so it is better if every time you make a transaction, make a recording journal, so you don’t forget. Still, if you don’t have time to record it, you can make it at the end of the week if possible, not more than one week, for recording a good journal has the date, account, debit, and credit values, if possible, add the transaction number and transaction description.
Separating journal contents into ledgers
Unlike the journal form, the general ledger will be grouped based on the type of transaction. For example, the cash account will contain all transactions related to your cash, then the accounts the receivable account will have transactions of your receivables. Therefore, you will form many tables to separate each commerce class and be careful in transferring from the general ledger journal to avoid transactions left behind.
The balance sheet is one element of the financial statement that explicitly reports the description and value of the shareholders’ assets, liabilities, and capital in a certain period.
The balance sheet report aims to determine whether the debit and credit values are balanced.
Pay attention to the balance sheet
The balance sheet is an element of the financial statements that report on the assets, liabilities, and shareholder capital for a certain period. The balance report determines whether the debit and credit values are balanced. If the journals and ledgers have been made correctly, you must balance the numbers on the debits and credits. Otherwise, there is a possibility that transactions have not been recorded or are wrong in the trade—account registrar.
Making financial reporting
Now is the time to make a financial report after you have done everything, from recording all transactions, making journals, transferring to the general ledger, and paying attention to the balance sheet. This report serves to see all the transaction activities that you do. It is helpful to see whether your business is experiencing a profit or loss. From this, you can think about what you should do for your next business.
If necessary, you can use accounting software such as Zahir Accounting, a practical application to help your business needs and prepare your business financial statements. You only need to input all types of existing transactions, and the software will process them later. It is more practical and saves you time preparing financial reports for your business. It may be a little difficult for those who are just starting to use this method, but if you do it every time, you will get used to making books of account for the business you run.
Bookkeeping and reporting are essential for running a business because if you cannot control the debits and credits of the company you are running, it will be fatal.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.