Your financials have many complexities. A professional can best handle these. You can then focus on what you need to do.
If you’re a cleaning business owner, knowing some accounting basics may hep you in understanding how the finances work.
The main idea of accounting is to document and record entries as there are transactions made. You need to ensure everything is recorded, whether it’s credit, debit, or cash types of transactions. You need to take note of any money movement in order to stay on top of whats going on in the business. And so, you’ve made an account of every penny.
Financial reports are required each month, each quarter, and yearly. The auditing part of your business will be in balancing financial statements. It’s simply the auditing of financial movement within the business. Your general journal includes a log of entries which represent the day to day transactions taking place. These entries must coincide with how the actual movement of money takes place, to the penny.
Your data entry processes can be simplified by using software like Quickbooks or Simply Accounting. These products will simplify your bookkeeping process and maintain a ‘trial balance‘ across the various accounts. Your trial balance will include assets, liabilities, and net equity. This is not really the final statement, but more of a ‘work in progress’ of the revenue, overall, within a specific financial period. Once one financial period is complete and closed, a new period and accounting cycle will be initiated.
Accounting is tricky. Unless you’re up on all this stuff, you’re better off with it in the hands of a professional. Some firms even provide consultation which may prove invaluable.