Accounting and Bookkeeping Are Essential to Any Small Business

Accounting software is almost always invariably based upon double-entry accounting rules and is used by accountants to calculate the many complex financial transactions any business makes which is then recorded into the books managed by a book keeper in Brisbane or an accounting firm. A major advantage to hiring an accounting staff along with purchasing premium accounting software is the access to a financial reservoir of information as well as a premium software system that can be utilized for data mining. Applying modern principles of visualization of data mined from the books with the help of both your accountant and the software allows a CEO the complete picture of his business which they need in order to make appropriate investment decisions.

Creating an expense and income statement using single-entry book-keeping is simple. First, you’ll need two databases of sales records that are current within the fiscal year. These listings, one of revenue received from receipts and the other revenue bills given, are hopefully meticulously maintained by the accountant. To report revenue, it’s insufficient to just add up the total of the accounts as this type of summary doesn’t create an audit trail of each and every potential sale or of your current inventory and expenses. A listing of sales bills does supply an audit trail. The most important info to enter to create an appropriate sales bill is: the the day of the purchase, title and name of the client, revenue gained from the bill amount if an item was sold and a simple explanation of the item, goods or services purchased by the client. In another line will be the the sales bill sum. If values like sales, state and federal taxes are expected to be accounted for then yet another line will have to be created and entered into the software.

It seems like a lot, doesn’t it? This is why it’s important to hire experienced accountants who either already own premium bookkeeping software or to have your own ready for them to use!

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