What is daily in bookkeeping in a business?
First, we must see whether the business uses a cash or accrual basis to ensure the accounting system is set up.
Cash basis
The sample spreadsheet for What is daily in bookkeeping in a business?
| Sundries | Materials | Travel | Cash | Peter | Fees | T’phone | Wages | Total |
| 2.86 | 60 | 5.36 | 340 | 408.22 | ||||
| 85.31 | 491.83 | 39.43 | 40 | 7.13 | 372.1 | 1035.8 | ||
| 24.57 | 43.5 | 118.1 | 12.61 | 198.77 | ||||
| 103.4 | 69.35 | 14.73 | 187.48 | |||||
| 98.05 | 500 | 12.45 | 610.5 | |||||
| 137.9 | 100.51 | 19.54 | 100 | 357.95 | ||||
| 113.9 | 72.98 | 72.39 | 80 | 1200 | 5.94 | 120 | 1665.21 | |
| 118.1 | 84.71 | 362.4 | 565.19 | |||||
| 583.18 | 960.93 | 595.2 | 180 | 1700 | 77.76 | 0 | 932.1 | 5029.12 |
What is daily in bookkeeping in a business?
Record all the transactions that take place in a day. So need to have a book or a spreadsheet to enter your transaction. Besides, it would help if you categorized all income & expenses as shown in the sample.
Then at the end of the day, balance the cash with your records.
Check your cash flow to see whether you have spent more than the income you received that day.
Check your daily stock to see whether you have enough to sell the following day. Also, enter the supplies you receive in your inventory record as soon as you receive them.
Reduce the prices of unsold goods before the expiry date to sell them at your earliest.
You must deposit all the cash received through your sales in the bank and not leave it in the business for security reasons.
Accruals basis
Which means you are selling goods or services on credit.
If a customer walks in and asks to buy something on credit, disagree straight away. Take time to check whether the individual can pay back on time.
Do you have credit management techniques on hand? If so, choose the best term to give the credit facility to that individual.
Then enter the record immediately because of the possibility of missing such transactions.
Keep your cash and credit sales records separately so you can check your invoice system at the end of every day and ensure you are not keeping any invoices without sending them out to your credit customers.
Do not forget to check the bank balance; check the cash balance at the end of the day after reconciling all transactions in the record to ensure you have not missed anything.
Ensure that you file all the invoices to customers and suppliers, but it has to do separately.
Make your payments to suppliers if it is due. If not, you will have lousy credit, affecting your business.
What is daily in bookkeeping in a business?
I advise small businesses to run the company on a cash basis to avoid cash flow problems. One of the reasons is that when a customer returns the goods, you pay back the cash and enter your records in your inventory records.
Same with your supplier, if you buy goods in cash, it is easier for you to maintain the inventory system. If you want to return the goods you will receive, the money immediately helps the cash flow.
Before the close of each day, review all transactions and reconcile them in your records.
When you maintain your tasks daily without any mistakes, the business’s survival is inevitable. If you do not support the system correctly, you will ultimately lose control over your business and face failure.