What is the budget for a business?

What is the budget for a business? A budget is used to measure the financial strength of your business; the result could be in three ways. Surplus : Earned profits Deficit : Incurred losses Balanced : Income and expenses equal. What is the process of developing a budget? In most cases, […]

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Twelve Tips for Interpreting Accounts of a charity

Twelve Tips for Interpreting Accounts of a Charity Twelve Tips for Interpreting Accounts of a Charity A charity is an organization that has to benefit the public. It can be a charity educating the underprivileged, removing poverty, or helping with health issues. Overall, it has to establish for the public benefit. […]

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The types of journals in accounting

The types of journals in accounting The general journal does not form part of the double-entry system. It is used as a guide to help ledger accounting staff to do their postings. New start-ups and other small business owners will not be able to progress in their businesses if they do […]

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Capital revenue expenditure in accounts

Capital revenue expenditure in accounts .What is capital expenditure? The purchase of capital items like machinery, land & buildings, furniture, fixture, and motor vehicles to use in the business either in the long run or for one or two years. The expenses incurred in this way are called capital expenses.  Capital […]

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Final accounts of sole trader 2

Final accounts of sole trader 2 What is a balance sheet? The balance sheet is not an account but a financial statement grouping and listing industrial properties, liabilities, current assets, assets, and capital on a specified date. It refers to the net worth or the financial position of the company. It […]

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Final accounts of a sole trader Part 1

Final Accounts of a sole trader Part 1 Final reports include a profit and loss account and a balance sheet. Profit and loss show whether the company has achieved profit or loss. A financial statement summarises the costs, expenses, and revenues during a specified period. These records help the company increase […]

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How to record credit transactions in books?

How to record credit transactions in books? You might have a manual method to see how much your customers owe you. You must have a filing system to file a copy of your sales invoices and send the original to the customer. Then transfer to another file once you have received […]

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How to expand your records as your business grows?

How to expand your records as your business grows? Analyzed cash book You might want to know some management information regarding your expenses as your business grows. As income increases, the costs also will increase. Therefore, it is vital to know about your expenditure. For example, you might want to know […]

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Regularity & Plan for your bookkeeping tasks

Regularity & Plan for your bookkeeping tasks How often should I do my bookkeeping?  Most people should do their bookkeeping, at the least, once a week. However, if you are working on your accounting every day, it is more likely to become a habit.   If you want to hire a bookkeeper […]

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Selecting suitable method for business accounting?

Selecting suitable method for business accounting? When you are running your small business as a sole trader, the possibility of neglecting the accounting side of your business is possible. Primarily you are a start-up your concentration will be on setting up the company and make sure that you do right things […]

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