What You Need in a Full Accounting System



Every business needs to have an accounting system so that at any time it is able to extract information that will highlight how the business is doing.

 

A good accounting system will provide the following information:

  • It will show what income is coming into the business
  • It will show what money is being paid out of the business
  • It will show how much cash is sitting in your bank account
  • It will show how much money is due into the business from debtors (those that you have made sales to on credit)
  • It will show how much money is due to creditors (those from whom you have purchased goods on credit)
  • It will show the amount of stock and its value sitting in your shelves, factory or stores
  • It will show the amount of money that is paid for wages and salaries of staff
  • It will show the assets that the business owns at any particular time
  • It will show the liabilities or debts that the business owes at any particular time
  • It will show which products are selling the best and which are slow moving
  • It will show what profit or loss the business is making at any time
  • It will also enable a valuation of the business to be carried out based on the results in the system

Every business needs to have some sort of system whether simple or complex and an accountant should be consulted to assist you in this area if you do not have the experience to put in place a system yourself.


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