As a business owner, Accountants Adelaide understands that you take on several responsibilities. You take on specialized responsibilities handled by professionals in large organizations. From records, we understand that accounting is one responsibility you take. To help you manage your finances, we have simplified the accounting processes. This will help you manage and track your finances well.
Although accounting is rigorous, these step-by-step instructions will help you out. We simplified the accounting process into 6 steps. You will succeed in managing and monitoring your finances with these steps.
Set up your business accounts
Choose your accounting method. This is the most important thing to do in accounting. Decide if you will use the accrual or cash basis. Decide if you will double- or single- entry system of accounting. After this, decide and establish your accounting cycle. Accountants Adelaide advice you start your accounting year on January 1. But this is your choice to make.
Collect all financial documents
Always collect all your business financial documents. This is important. Gather all collected documents together on time and regular basis. Do not fall to do this. Your financial documents include records of cash your inflow or outflow. It includes anything that has records of your assets and liabilities. Collect your supplier’s invoice, sales receipts, refund slips, and cash registers. Collect credit card account statements if you have any.
Record all your business transactions
From your financial documents gathered above; record all business transaction. Record all transaction in your business accounts. You should post all sales to income accounts. You should post all cash outflows to expense accounts. For example, record any sales information on accounts receivables. Record your payables on your credit account statement.
Reconcile your internal accounts
Reconciling of your internal accounts is important. Always reconcile your internal accounts to external records. After this, compare your reconciled accounts with your supplier’s record. Compare your reconciled accounts with your financial audit result if any. This practice helps you know if your accounting system is accurate. Do this on regular basis.
Compile your financial statements
For incorporated business, compile financial statements for investors and government, and lenders. Otherwise, create a balance sheet using balance sheet templates from the internet. Create income statement using templates from the internet. Create cash flow statement using templates from the internet. Use these statements to aggregate data in your accounting system. Present these data in clear and precise manner. Doing this help ease strategic decision-making. You can use the internet accounting software package like QuickBooks. This software package will help you organize your accounts. It will put your accounts in printable financial statements.
Compile internal reports by yourself
You should compile all internal reports by yourself and your managers if any. Ensure to perform ratio analysis on your financial statements. This will help you understand the true state of your business performance. Accountants Adelaide suggests you create financial reports from your analysis.
Starting your business is a success story on its own. Getting acquainted with doing your accounting is another story. Everything changes with time and growth; so will your business. So Accountants Adelaide suggests you seek professional accounting support.