Bookkeeping for Beginners: Basic 4 Types of Bookkeeping You Should Know

Posted by gghbn on December 11th, 2019

Bookkeeping is a process that involves the recording and organizing, on a daily basis, of a company’s financial transactions and the one who is responsible for that process is called bookkeeper. Bookkeeping is a major way through which one can be able to discover all the areas of profit growth you might have skipped from you. Business owners can keep an eye on all data on their books with proper bookkeeping Sydney service and can make a key business, expenditure, and funding decisions accordingly.

While bookkeeping can be seen as a very complex task with a litter bit of understanding of some of the important types of bookkeeping you should know about.

Cash: It's an important account which is not any simpler than your cash account and is often used by bookkeepers to monitor all the business transaction and activities whether that’s incoming or outgoing.

Accounts Receivable: You will have an Accounts Receivable aspect to your bookkeeping if your business account is the type where you sell products and services and don’t require payment straight away. In this account, you will keep all the records of the status of the pending payments and should be kept up to date so you can send invoices on time.

Inventory: It is a very important account that helps you predict exactly how the company will work over an accounting period. All of the available products you have in stock are listed here.

Accounts Payable: This account helps you to see how much money leaves the company-and when. Like the others, you ought to take proper care of this account so that you don't make any payments late, you not to over-spend and find yourself short for monthly outgoings, and to make sure you don't pay twice to anyone.

For more detailed explanations of the types of bookkeeping or the benefit of outsource bookkeeping services, go ahead and contact us.