#BOOKKEEPING 101 PLUS#

They’re also called general ledger codes. There are many advantages to keeping accurate books. The project accounting details include: Contact amounts. It is because any inaccuracy might lead to losses to the company. This means things like sales, purchases, wages, bills, rent basically all movements of money, in and out. Project estimation: Construction companies must make accurate estimates about the project costs and potential revenue. Chart of accounts: A list of all the accounts you use to record financial transactions in your ledger. Bookkeeping is simply another word for record-keeping specifically, keeping records of all the financial transactions of a company or individual.

Profit and loss (P&L) statement: Totals the revenue and expenses for a set period of time and demonstrates how the business is trading.

#BOOKKEEPING 101 PLUS#

Balance sheet: Lists the things your business owns and their value, plus the amounts your business owes.

Financial statements: Reports that shows the financial activities and performance of a business – two main ones are the balance sheet and profit and loss statement.

Expenses: Money paid out to keep the business running.

Revenue: Money coming into the business through sales, interest or dividends.

Equity: Money introduced and withdrawn by the owner or shareholders.

Liabilities: Amounts the business owes in unpaid bills, taxes, wages, or loans.

Assets: Things the business has bought and owns (or part-owns), inventory, and money owed to the business as accounts receivable.

Accounts: The categories under which all business transactions fall.

Ledger: The place where business transactions are recorded and categorised.

Bookkeeping 101