How to record the right financial transactions for your business? One of the important activities that must be carried out by companies is recording financial transactions . The recording of transactions is the basis of the accounting process .Without recording the financial transactions that have been made, you cannot make financial statements.
What we know is that financial statements are the duty and obligation of the company to its stakeholders.In addition, by recording and making financial reports , you will get many benefits, such as making assessments, determining evaluation or improvement steps, helping decision making, assessing company performance, and many other benefits that can still be obtained.
Unfortunately, there are still many business actors, especially small businesses, who have not recorded many of the financial transactions they have done. Some of the reasons they mention are because it is difficult and complicated.Whereas a company can be said to grow well if it has neat, valid, accurate, and easy-to-read financial reporting.
Table of Contents
1 How to Easily and Neatly Record Financial Transactions
1.1 Collecting Evidence of Financial Transactions
1.2 Identification of Authenticity of Financial Transaction Evidence
1.3 Through the Right Procedure
1.4 Journalizing Transactions
1.5 Transferring Notes to the Ledger, How to Record Further Financial Transactions
1.6 Making a Balance of Financial Transactions
1.7 Making Financial Transaction Reports
2 Recording Financial Transactions is Easier by Using Journal Accounting Software by Mekari
How to Record Financial Transactions Easily and Neatly
For more details, the following is a guide on how to record transactions easily and neatly.
Collecting Evidence of Financial Transactions
The main step that must be taken to record transactions is to collect all evidence of transactions that have been carried out.Proof of transactions is very important because it is the basis for recording transactions.As for examples of proof of transactions such as invoices or invoices , notes, proof of receipt, proof of payment, receipts, deeds, letters of agreement, money orders, checks, and other evidence of transactions.
Identification of Authenticity of Financial Transaction Evidence
The evidence that has been collected does not mean that all can be recorded. The evidence that may be recorded in the books is the original evidence, so the second step after collecting evidence is that you must ensure the authenticity of the proof of the transaction.
This second step is an important step because it will relate to subsequent processes, especially the audit process.If you are caught recording transactions with false evidence then the risk will be very large. Your business can run into a lot of trouble until it might eventually be frozen.
Therefore, make sure that the evidence recorded is genuine evidence, not fabricated or fake evidence.Especially with the sophistication of technology, making or imitating evidence is an easy thing to do, so you also have to be vigilant.
The way that can be done to check the authenticity of the evidence is by cross-checking between parties, both internal and external parties.In addition, you can also check it by looking at the company information, signature or stamp as proof of authenticity.
Through the Right Procedure
As we all know, accounting is a process, so to do it you also have to go through the steps or stages in sequence correctly.
Journalizing Transactions
The next step that can be done is journalizing transactions. In order for the recording process to be efficient, you should always record every transaction in a journal after the transaction is made.Don’t wait until the transaction has been accumulated for a long time because you can forget to record it or the proof of the transaction may be lost.By taking notes right away, you can also prevent mistakes when copying in the ledger .
Transferring Notes to the Ledger, How to Record Further Financial Transactions
The general ledger is a record of transactions grouped according to their accounts. Posting journals in a ledger will make it easier for you to make financial reports.
So you should not underestimate the ledger.
Making a Balance of Financial Transactions
If you have recorded financial transactions neatly, then you can make a balance sheet .
This activity aims to determine whether the total balance on the asset side (debit) is the same as the balance on the liability side (credit).
If it is not balanced, it means that there are transactions that have not been recorded or there is an error in counting.
You can correct it before making financial statements. Thus making a balance sheet can also reduce the risk that you are wrong in making financial statements.
Because if the error is known when it has become a financial report, of course your work will be more and more.
Making Financial Transaction Reports
If all the steps above have been carried out properly and correctly, then you can arrange the financial statements neatly.You just have to write neatly and follow the rules or applicable financial reporting standards, such as income statements , statements of changes in capital , balance sheets and cash flow statements .
Leave a Reply