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5 BOOKKEEPING
BASICS
Every small business owners must know.
BOOKKEEPING 101:
Most business owners got skills on the
selling aspect of the business but
lack basic knowledge in bookkeeping.
A REQUIREME...
The business may have an in house
bookkeeper but when the owner himself is
unable to understand the finances all will
be f...
Perhaps engaging on study sessions to
fully understand books might be helpful.
But before enrolling, here are 5 of the
com...
CASH
In the cash account, all business
transactions were passed.
In order to keep up, bookkeepers use two
journals:
CASH R...
CASH
RECEIPTS
JOURNAL
A journal that let you keep track of
received cash by creating a record.
C
A
S
H
CASH RECEIPTS
JOURNAL C
A
S
H
INCOME and DEBTORS - major categories
SUNDRY - various miscellaneous (sample:
capital or loa...
DISBURSEMENT
A journal kept by accountants to record
financial expenditures of the company.
Function as 'checkbook ledger'...
ACCOUNTS
RECEIVABLES
This is more applicable to companies that sells
products or services.
Tracking of receivables is crit...
ACCOUNTS
PAYABLE
The money owed to creditors.
Handling of your bookkeeping well will
assure you of unmissed payments.
TIP:...
OWNERS'
EQUITY
Keeps track of amount put by each owner in
the business.
The books must contain all owners' equity
accounts...
RETAINED
EARNINGS
Cumulative earnings that shows the money
retained since the company started.
Keeping track of this accou...
BENEFITS OF KEEPING
TRACK OR YOUR RETAINED
EARNINGS:
The earnings could be invested to areas of
the company to create grow...
THANK
YOU!
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Bookkeeping 101: 5 Bookkeeping Basics

A business should have a grasp of how the accounting department works. To let you prepare, here are 5 basic bookkeeping ideas needed to be known.

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Bookkeeping 101: 5 Bookkeeping Basics

  1. 1. 5 BOOKKEEPING BASICS Every small business owners must know. BOOKKEEPING 101:
  2. 2. Most business owners got skills on the selling aspect of the business but lack basic knowledge in bookkeeping. A REQUIREMENT FOR SMALL BUSINESS
  3. 3. The business may have an in house bookkeeper but when the owner himself is unable to understand the finances all will be futile. NO KNOWLEDGE MEANS NO PROGRESS
  4. 4. Perhaps engaging on study sessions to fully understand books might be helpful. But before enrolling, here are 5 of the common bookkeeping account types relevant to small business owners. A CRASH COURSE OF THE BASICS
  5. 5. CASH In the cash account, all business transactions were passed. In order to keep up, bookkeepers use two journals: CASH RECEIPTS CASH DISBURSEMENT
  6. 6. CASH RECEIPTS JOURNAL A journal that let you keep track of received cash by creating a record. C A S H
  7. 7. CASH RECEIPTS JOURNAL C A S H INCOME and DEBTORS - major categories SUNDRY - various miscellaneous (sample: capital or loan cash received) BANK - used to show total cash from specific period.
  8. 8. DISBURSEMENT A journal kept by accountants to record financial expenditures of the company. Function as 'checkbook ledger' C A S H CASH
  9. 9. ACCOUNTS RECEIVABLES This is more applicable to companies that sells products or services. Tracking of receivables is critical due to it not being collected immediately. OUTSOURCED ACCOUNTING For an assured timely sent bills or invoices, perhaps engaging on an would be beneficial.
  10. 10. ACCOUNTS PAYABLE The money owed to creditors. Handling of your bookkeeping well will assure you of unmissed payments. TIP: Paying your bills early could lead to discounts.
  11. 11. OWNERS' EQUITY Keeps track of amount put by each owner in the business. The books must contain all owners' equity accounts to avoid biased order.
  12. 12. RETAINED EARNINGS Cumulative earnings that shows the money retained since the company started. Keeping track of this account will show if the business was a success or a failure over time. FORMULA: Retained Earnings (RE) = Beginning RE + Net Income - Dividends
  13. 13. BENEFITS OF KEEPING TRACK OR YOUR RETAINED EARNINGS: The earnings could be invested to areas of the company to create growth opportunities. SAMPLE: Addition of new machinery. Allot money on research and development.
  14. 14. THANK YOU!

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A business should have a grasp of how the accounting department works. To let you prepare, here are 5 basic bookkeeping ideas needed to be known.

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