You can make simple bookkeeping on an ongoing basis by recording assets, liabilities, capital, income and expenses, and the income used as a basis for preparing the balance sheet and income statement. However, if you want the easier way, you can always hire bookkeeping services gold coast.
Here are 6 steps to making simple bookkeeping:
1. Make a logbook of expenses
Make a separate book specifically for recording business expenses. All expenses or purchases in the business from the purchase of raw materials, operations to employee salaries must be continuously recorded clearly. By recording all business expenses, you will find out how much business capital has been spent.
2. Make an entry notebook
After having an expenditure cash book, the next step that needs to be prepared is an income cash book. The income book will be used to record all transactions related to company income.
3. Make the main cash book
The main cash book will be used to combine transactions between the cash book of income with the cash book of expenditure. By combining transactions from the two cash books, you will find out in detail and clearly how much profit or loss in your business.
4. Make stock notes
In business financial accounting, transactions recorded are not only related to money but also goods. You also need to continuously record the number of items that enter and exit each day. The higher the level of sales, the intensity of the number of goods going in and out will also be higher as well. By having a stock book, then you can monitor and supervise the inventory of goods that are in the business.
5. Make an inventory of goods
The next step is to make an inventory of goods that is used to record all the company’s goods that have been purchased. All types of goods owned by the company, both those purchased through the budget and grants or donations, must be entered in the inventory book. Having an inventory of goods will keep every company’s assets in a controlled and controlled manner.
6. Make an income statement
The income statement is used to record the company’s income and expenses for a certain period. By doing the recording, then you will find out whether the company is in a condition of having a profit or loss.