The Four Things You Need To Know Regarding Your Bookkeeping Services Flower Mound TX Inquiry
You may have hired a payroll specialist fresh out of college. That person, however, could be making mistakes that cost the company time and money. That is why you need some help understanding some of the basics.
1) The cash account is one of the more basic tools you find in accounting. The problem some companies have is they only use one catalog to keep track of everything. You need to use a Cash Receipts and Cash Disbursements journal. Each transaction has to be written down in the right catalog.
2) There is something called the “Accounts Receivable” journal. You have one customer who pays right away. You have one who is delayed with the payment. It does not matter why the person is delayed, you have to keep this item separate. That inquiry goes to the Accounts Receivable Journal.
You have to keep this up-to-date. The reason is that you do not want to send an invoice to someone who has already paid in full. That is going to make the customer confused. It will also make your company look bad.
3) The items you have sitting on your shelf is called your “inventory.” Some call it “money collecting dust.” You need to move it to the floor or stop ordering it. You have to keep track of what is in your inventory and why.
You also have to know how long every item has been there. Some companies let their inventory sit too long. They order too much or the wrong thing. Sometimes they make a mistake and do both. Sometimes the company overestimates the public’s interest in something.
The items sit there longer than they should. Why do you think some companies place such a cheap price tag when they go on sale? The items are out-of-date. The companies are practically giving them away. Companies that keep better track of their inventory do not make this mistake as often.
4) There is something called the “Loans Payable” journal. That is why you invest or borrow money from someone or somewhere else. You must pay the money back. That is why you need this catalog in your files. It tells you what has been paid and when. It will also show you how much you currently owe. Anything that is left to chance in this journal could either become a profit or loss for the company. More companies make this mistake than you think.
That is why you need the professional help of Master Plan Tax Services.
Call us for information on some of the best bookkeeping services Flower Mound, TX. We can help you get back on track.
Contact us today!