What you need to know about accounting

However you choose to do with your records, there are things you need to know. For starters, you must collect and number all invoices and receipts, known as vouchers, in an organized way in folders by date. The next step is to register them in a DAYBOOK (see below) and a general ledger (see below). Then you compile the results in an income statement (see below) and a balance sheet (see below) and the base is used to close the books (see below) in your company.

That is:
1st Collect all bills and receipts by date in folders.
2nd Register them in a DAYBOOK and a general ledger.
3rd Compile the results in the income statement and balance sheet.
4th Make statements.

DAYBOOK
Basic Accounting means that all business transactions must be written down current in chronological order. Cash receipts and disbursements must be recorded each day, the other as soon as possible but no later than the end of next month. For each entry, there should be dates, voucher numbers and amounts of debit and credit accounts.

Ledger
In the trial ordered business events. All such events are collected on the same account. If you use the computer (Which you should do) is the main accounts automatically when you register for the basic book or directly from the supporting documents.

Income Statement
The income statement is a summary of the costs and revenues. When you are finished recording, you can compare the results with the budget you made for the period.

Balance Sheet
The balance sheet is a list of assets and liabilities. The sum of all assets must be equal to the sum of all liabilities and shareholders' equity (if any). Balance report will help you to monitor the liquidity of your business.

Closing
Notes to the Financial job is to show how the company released during the year and location of the company at year end. If you have more than 10 employees and / or assets of 24 million, you should also make an annual report, submitted to PRV.