Bookkeepers Sunshine Coast is all about keeping records of financial transactions. It is a major part of the accounting and business world. These transactions include sales, receipts, purchases, and payments that have been done by an individual person or an association. The bookkeeping calculation for a single proprietorship is assets = obligations + impartiality of the owner. In the equation of bookkeeping
• Assets are said to be the resources which are owned by any business
• Obligations are the expenses that a business holds
• Equity of the owner is the sum of money that an owner has invested along with the net revenue of the corporate minus the finances that the owner has withdrawn for his personal usage.
Bookkeeping is a work of bookkeeper who can record the day-to-day transactions of finances. They usually have to keep a daybook where they maintain records, of purchases, sales, payments, and receipts. They also manuscript every financial contract whether done on cash or credit. Their daybooks can be a cashbook, supplier’s ledger, customer’s ledger or general ledger. It is the bookkeeper who brings the daybook to the stage of trial balance and is considered as an accountant who is reasonable for preparing the income statements, balance sheets, and financial journals.
Methods of bookkeeping
There are two major bookkeeping methods that are being followed these days. These methods are a single-entry bookkeeping system and a double-entry bookkeeping system.
• Single entry system
Single-entry for bookkeeper sunshine coast is suitable for the majority of small businesses since it only uses accounts of income and expense which are recorded primarily in an expanse journal or revenue. The bookkeeping record in this system is mostly a cashbook which resembles a checking account register except for the fact that all entries are allotted among different kinds of income and expense account. Here, separate accounts are also maintained for minor cash, payable/receivable accounts and other significant transactions like travel expenses and inventories.
• Double entry system
In a system like this, a maximum of two accounting entries is needed to prepare documentation of every financial transaction. These entries are recorded to liability, equity, asset, and expense or profit accounts. It is considered as a set of rules that are used for recording financial information in a financial accenting system. It is a system where at least two different nominal ledgers are changed with each and every single transaction or event. It has two different equal and corresponding sides called debit and credit where the recording of debt money to one or more accounts will lead to complete debits being equivalent to total credits for all accounts.