Believe it or not, bookkeeping is essential and crucial task for your business regardless the size of it. To grow your business, you must master over bookkeeping to manage your business finances down to a tee. For any business, bookkeeping is essential as it aids businesses and accounting firm supervises finances occurring within the business. But without knowing the types of bookkeeping you may never know how to go about it.
But don’t get fret. Here we’re. In this article, I’m going to enlist 8 important types of bookkeeping. Without much ado, let’s talk about them below.
8 important types of bookkeeping, you must know
Below mentioned is the list of top 8 bookkeeping types, make sure to read every type thoroughly so that you can have fair idea on managing bookkeeping of your business. Let’s learn together:
Cash is the first type of bookkeeping. Every transaction occurring within the business be it incoming or outgoing, all of them will pass through your cash account. Make sure to keep tabs on your cash flow. To accurately manage cash of the business, there are many bookkeepers that often use two records: cash receipts and cash disbursement. With these two approaches, you easily track the cash activity.
Inventory is another important aspect of bookkeeping. As a businessman, you have to make a record of every item that you inventory stock. To check how your business is going to perform in the future, keeping a proper inventory stock is right approach.
3. Payroll Expenses
Payroll is considered to be expense for any company. Paying right amount of salary to each employee every month is crucial to record and update each month. Moreover, if you don’t pay correct amount of taxes then it will land you in deep trouble.
How do you track incoming revenue? Through sales right. When you track all your incoming revenue from your sales transactions, you get the true position of your business in the market. Let me tell you that whenever you make money by selling products, just record it in your accounting book so that you don’t miss anything.
5. Accounts Receivables
Another type of bookkeeping is accounts receivables. Whether you have collected money or still pending from clients, everything has to be written in accounts receivables books. As the name suggests accounts receivables, you have to receive amount or pending amount from your clients and customers.
6. Accounts Payable
Above you read about accounts receivables, now it’s time to know about accounts payable. The name itself says payable that means you as a business have to pay money. However, the sign of a good company is that they make early payments to keep up the company’s reputation. The accounting firm providing accounting services in San Antonio also manages their accounts payable properly.
How can you forget about tracking purchases of the company? You have already considered tracking sales right. To manage proper business finances, tracking sales as well as purchases are crucial. In fact, you can easily track the gross profit and loss occurred within the business.
8. Loan Payables
Have you ever taken loan for your business from third party or bank? If yes, then you have to make an entry of those loan payable in your accounting book. With proper accounting records, you track and break down everything and get fair idea about when to make payment. So this is how you manage everything to manage proper bookkeeping of your business.
The bottom line
For any business, bookkeeping is crucial for any business success. Without having proper knowledge about bookkeeping, you can’t manage business finance. That’s why learning the types of bookkeeping become vital for any type or size of business. Above I have mentioned all the crucial types of bookkeeping, I hope you have learned about them and found this article informative. Well, you can also outsource virtual bookkeeping services in Los Angeles from renowned accounting firm like Kayabooks.
For more queries and concerns you have, we’re here. All you need to do is get in touch with us.