One of the core departments in any business is the accounting department. Without it you will not know how your finances are handled, where your capital went, what your current and future expenses are, how your sales are doing and everything that pertains to business finance.
Accounting information includes all the past, current and future business finance transactions of your company. Proper recording of all this information is needed for your company’s continued success, for financial audits and for business tax purposes. Accounting numbers for assets, liabilities, capitalization, debit and credit, income and expenses are all recorded in big accounting ledgers. Before the advent of computers and the creation of business accounting software, all accounting records are done manually and the staffs in an accounting department keep different kinds of ledgers for the purpose. Today accounting information can be stored and maintained using a computer and a business accounting program that facilitates record keeping. You should be able to get up-to-date figures from your general accounting ledger and make projections. Microsoft Excel is a spreadsheet application that can be used to record general accounting information of a small business entity. Take a look below.
- All your contracts, financial papers, loan documents, payroll, debit and credit memos, income and expense statements, accounts receivables and payables, bank statements and receipts should be kept by the accounting department or the people handling your business’ accounting tasks. These should be segregated by year.
- If you are using MS Excel, open a new worksheet and copy the headings from your accounting ledger and use these as header for each column. General ledgers have debit and credit columns. There will be sub-columns under debit and also under credit as expenses and income/capital come from different sources.
- Start entering the data from the manual ledger, in chronological order, beginning at the start of the fiscal or calendar year, depending on what system your company has adopted.
- Check all the receipts and records of expenses in the proper columns. Dates are also very important when recording accounting information. You can include a brief description beside each entry.
- Total the amount that you have entered under each column. Make sure that you have recorded all the amounts from all the documents that you have with you. Double check each entry against the paper records. MS Excel can automatically give you the right sum even when you make corrections in some of your entries. Be sure to save your worksheet when you are done with the data entry and give it a proper name that is easily identifiable. Print out of copy of your worksheet. This should be filed together with the receipts and other documents per month.
- Open the business accounting software that your company has. There are several types of standalone accounting software such as Peachtree, Quickbook and Red Wing Software. Each one has their own unique features. Upload or enter the figures that you have from your general worksheet. Check that you are entering the figures under the correct month. It will be laborious if you make a mistake and have finish entering all the data.
It will make your work easier if you update the accounting information as soon as you receive documentation. This will minimize errors and you can be sure that your records are up-to-date and can be retrieved easily when needed. Company officials will always want to see the latest financial status of the company or the business.