Keeping good financial records is the core of every business. By making sure that your business records are accurate and complete, you are given a clear picture of the performance of your business. The general ledger is not a mere notebook where you write figures. It is a tome within which numbers leap out to aid you in your business decisions.
Back in the days of manual accounting, there are three main journals that are commonly used:
- Cash Receipts Journal
- Cash Disbursements Journal
- General Journal
The first two journals provide records for the company’s daily transactions of sales and expenses. Both deals with the transactions involving cash, both outflows and inflows. The general journal provides for details including employees’ compensations, recording of equipment depreciation and other pertinent journal entries.
Aside from regulatory requirements, what other benefits can you reap from establishing and maintaining a good General Journal and General Ledger?
Basically, a good accounting and recording system will allow you to create and pull reports from your records at a second’s glance. You will be able to summarize your profits and losses for the past five years especially if you are applying for a commercial loan. You will be able to easily assess which of your expense accounts substantially contributes to your total expense. You can readily see which assets you have purchased this year and how often capital expenditures were incurred.
By maintaining proper accounting records, you can also identify product lines or revenue sources that are not providing much revenue as intended. Based on a study of patterns and transactions, you can lift details from your records that are indications of fraud.
If you are looking for a reliable team that can provide you with the right accounting and bookkeeping system, Jeffrey Fleurinor, CPA is the choice that you have to make for your business.
With our experience in handling the accounting records of small and medium-sized enterprises, you are assured of an accurate and seamless general ledger and general journal. We can search and identify discrepancies in your books and provide for ways for you to effectively record transactions. Our Accounting and Tax Services in Georgia are reputable and certainly steadfast.
Give us a call today.