Your worst bookkeeping adversaries are incomplete transactions, loose ends, and numerical inconsistencies. The process of bookkeeping is meticulous and time-consuming. You cannot skip any procedures, even though using bookkeeping software is simpler than monitoring it by hand. Getting help from an accountant in Atlanta, GA, is a good idea.
Here are some bookkeeping fundamentals you should just not overlook, in addition to tracking your cash flow, inventory, wages, and payments:
If you run a service-based firm, issuing invoices is the main way you will get paid for your work. After a project has been finished, billing needs to happen right away. Procrastination is not advised because billing enables you to receive funds into your account quickly. This process is made simple by a range of invoicing tools.
The less ambiguous and thorough your invoice is, the less likely it is that a customer will put off paying you because of a problem. Gather as much information as possible about your client, including their business address and the names of the individuals responsible for paying the invoice, so you have it for future invoices. This will guarantee that the appropriate party receives the invoice and prevent needless payment delays. Your invoice has to have an invoice number, a list of all the services you provided, the price you charged for each operation, and a short outline of each service. In the final paragraph, list the actual sum due along with details on terms and options for payment.
The distinction between billing and invoicing relates to the giving and receiving of money. Use one of the two words to differentiate between cash coming in (invoices) and money going out. A bill that you submit to your client is called an invoice. On the other hand, you receive a bill from a vendor when they invoice you for a service. The charges you owe to outside vendors are tracked in your billing account, also known as accounts payable.
Your bills are a balance due on your account until they have been paid in full. As a result, it is critical to remember them all and be aware of when money is being taken from your bank account to pay bills.
As a company owner, you can assess your company’s general health using financial reports. We advise you to read reports that provide you with a broad perspective. An income statement, a budget versus actual report, and a balance sheet report are the 3 kinds of reports that will enable you to achieve that goal effectively.
An income statement provides the most comprehensive picture of your company’s financial health, sometimes referred to as a statement of profits and losses. The most important information is the first: if your company is making a profit or losing money. The income statement tracks expenditures and income over time.