There are millions of businesses be it small to medium sized or startup companies and their owners know everything about how to offer great services, to build an amazingly hard-working team, and how to win the trust of their consumers. However, a lot of them usually flunk the basic bookkeeping as they are considered as an overwhelming task or chore. You need to understand that bookkeeping is actually your best friend who helps in running your business quite effectively. A lot of people wonder about Bookkeeping and about its types, well go through the followings to explore the different bookkeeping accounts…
- Accounts Receivable: It is important for one to collect the payment immediately and in case you don’t after selling your services and products then you have “receivables which of course is important for one to keep a track on. Radically speaking, it is the money due from the consumers and it is essential for one to keep it updated to make sure that you send the bills on time and with precision.
- Inventory: You know how products that are in the storage are just money that is sitting on the shelf which is why it is important for one to have them accurately accounted and tracked. The digits you have mentioned in your books should be tested periodically by inventory.
- Accounts Payable: Since nobody likes to give out money, it will be less painful for you to at least have a clear image of everything through your accounts payable. Those who prefer bookkeeping on a regular basis make sure that payments get done on time and also that you are not giving out money twice to the same brand.
- Sales Account: Okay, this is the part where one can keep a track on all the revenue that comes from whatever that you sell. Recording your sales regularly and with precision is quite critical as you would like to know your business’ current status.
- Payroll Expenditure: For businesses, this is the biggest cost and it doesn’t matter how much one begs, there will be some people who want nothing. It is important for one to keep such accounts updated with accuracy in order to meet their tax and other reporting needs.
The list can go on and on, which we will continue on the next post till then stay tuned with Joe Madrajat blogs…