Types of Simple Bookkeeping in Financial Statements

Bookkeeping is one of the main tasks in a business. Therefore, every business, whether large or small, needs to keep financial books even though they are simple. Although financial records are often forgotten by most business people, you must also understand how to do simple bookkeeping in your daily business activities. This is because, through xero marrickville, you can see business finances, profits, losses, and so on in the company.

Usually for large companies, making bookkeeping is easy because they already have experienced accountants who they make as employees to specifically do bookkeeping in their company. Meanwhile, on the contrary, new or small entrepreneurs often think that making bookkeeping is very difficult and complicated, so they rarely make this simple bookkeeping. Many new entrepreneurs rarely keep simple books because they are more focused on the product, and the sale of the product or service. Indeed, focusing on sales and product quality is a good thing because you are still in the process of introducing products to the market and looking for profits.

But, when your business continues to grow and progress with a lot of buying and selling activities, there will be more transactions to count, right? Now, if you don’t have the books upfront, the accounting process at a later date can be even more difficult. In addition, maybe you think your turnover is already big, even though you may not have a profit margin or cash funds because there is no clear record. Bad too, right?

This type is often referred to as a cash book. This cash book is a combination of records between expense and income transactions. To make this bookkeeping very easy, you know! You only need to write down all the income and expenses that occur in your business activities. Income and expenses in the company are very important to be recorded and known. So that you can more easily plan your return on business capital, targets, sales, and so on. You can record everything from sales income, purchases of raw materials, operational activities, administration, employee salaries, and others in this cash book every month.

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