The first step you should do is make a separate book specifically for expense records only. All expenses and expenses from your business, from purchasing materials to operations such as employee salaries, must be recorded continuously and clearly. The benefits of recording these expenses so you can know how much business capital you have spent. However, if you need to hire an expert to record your business financial data, we suggest you hire the best xero bookkeeper eastern suburbs.
Next, you need is an entry log. The point is to record all transactions related to company income, such as the sale of products obtained per day and also receivables that have been paid. Just like cash disbursements, these records must be made continuous and routine.
Now, after you have the two ledgers, the two are then combined in one main cash book. By combining transaction expenses and income gains and losses your business can be seen in detail.
In addition, in company records, not only incoming and outgoing money is recorded. However, goods that go out and enter must also be entered in the accounting records. And again, this must also be recorded continuously and routinely. Why? Because if your business is more advanced, then the number of goods going in and out will be higher.
With the stock book, you can control and monitor the inventory of goods in your company. Another function of the stock book is to avoid fraud from both internal and external companies.
After stocking, you have to make an inventory book of goods that is used to record all items purchased and including those managed by the company. All types of items obtained either by purchase or grant must be included in this record. Thus, the company’s assets will be maintained and controlled.
The last book you need to prepare is the income book. This book records all company revenues and expenses for a certain period. This recording is useful so that you can find out whether your company is making a profit or loss.