All posts by Leslie Angus

5 Essential Accounting Tips For Your Business!

A business can go bankrupt for a variety of reasons, one of which is poor management. In addition, other external problems such as the pandemic caused by covid-19 may also play a role. 

Hire A Good Finance Professional

Even if your business is small, it’s critical to have the support of a finance professional in your business. Since, they are the most qualified to manage your finances in an organized and effective way.

That’s why delegating roles and assignments that you can’t or don’t have the necessary knowledge is essential. Especially when the issues involve payment of taxes and duties, issuance of bank slips and information on legislation. 

Organize Your Company Documentation

In this case, even if you are not the person responsible for accounting for the debit and credit balance accounts , it is very important that you have all your company documentation organized. 

Thus, you have control of all invoices, entries and exits, purchases and expenses. Especially when it is necessary to declare income to the government, which is the case of income tax. Therefore, separate them according to dates, names or type of account paid. 

Have Efficient Management

Although not a tip directly linked to basic accounting, it is something that makes a difference in a team. Having a team aligned with its values ​​is something that will facilitate the development of the work throughout the day, in addition to bringing much more results.

Be it at the time of introduction to accounting , or even when the professional becomes an expert. Look for employees who have the same or similar goals as you. That way, your days will be more productive 

Maintain Continuous Communication With The Accountant

To avoid divergent information, it is worth keeping in direct contact with your accountant and always keeping him updated regarding the company’s accounts. That’s because it facilitates the resolution of possible financial problems. A tip is to share the data in a spreadsheet or somewhere specific.

Always be in contact with your accountant or accounting office. This is the best way to avoid bigger problems in the future. In addition, reading some accounting books for beginners can also help you with this contact.

Use Technology To Your Advantage

Choosing a good software can make all the difference in the accounting step by step . That’s because, with the right tools, it’s much easier to keep automating some processes and keeping track of your finances. 

In addition, a good management system helps in optimizing processes, saving time, reducing errors and recording various transactions. Including issuing bills and invoices. That way, you’ll be able to generate reports and create documents without difficulties.

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Trial Balance: Know What It Is And When To Use It In Your Business

The balance sheet is a statement widely used in accounting, to verify through debits and credits the financial health of the company. With it, it is possible to have an internal control to analyze within a specific period assets and liabilities of results.

It is important to highlight that the report can be done in different periods, that is, following the organization’s needs, being monthly, weekly, biweekly or even daily. Also, it can be edited or changed whenever necessary.

Why is it important to carry out the trial balance?

Although the accounting balance is not mandatory, it is great to inform the entire financial position of the company and, therefore, it is valuable information for financial institutions, shareholders, potential investors, competitors, suppliers and unions.

In other words, with the balance sheet, it is possible to know the business’ capacity to pay everything for everything it has, the assets, whether using borrowed money or using it from investments and shareholders. And so, assess how the company has performed over time, and account for profits and losses.

Therefore, for efficient management, the company’s balance sheet must be made as up-to-date as possible. Pointing out errors such as duplications, omissions or inversions, such as divergent balances, with great care and avoiding future losses.

Trial Balance Purpose

Remember that the trial balance is designed to ensure the integrity of accounts from volatile balances, that is, which can be changed at any time by the accounting professional. Therefore, it must contain the following items:

  • Company identification;
  • What is the reference date;
  • What are the accounts and their groups;
  • Account balance;
  • Sum of credit and debt balances;
  • In more detailed models, it also needs the code and full description of the accounts.

What accounts are found on the trial balance?

The trial balance is formed by income accounts. The assets are assets (goods and rights) and liabilities are obligations. In assets, you will find accounts allocated in order of liquidity, and in liabilities, in order of demand, which must be settled in a shorter period.

In income accounts, you can find income, expenses and costs. In which the revenues show all the earnings that the company has, the costs which are the values ​​that are used to keep the company running, and in the expenses what is spent but are not directly linked to the company’s operation.

What are the types of trial balances?

Now that you know what it is, and you know how this statement is structured, it is worth knowing what the balance sheet types are. Understand that the main difference between them is the way accounts are presented. Check out:

Synthetic

In the synthetic balance sheet, the statement is made only from the final numbers of the company’s main balance sheet accounts.

Analytical

In the analytical balance sheet, the accounts are detailed with as much detail as possible to represent the company. Thus, it is a very extensive report with relevant information for analysis.

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