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Business Ledger Software for small and medium Business

Author: Benny Jackson
by Benny Jackson
Posted: Mar 15, 2021

Every small and medium business needs to maintain the accounting and tax system has the following key components.

  1. Chart of accounts
  2. General ledger
  3. Accounts receivable
  4. Fixed assets
  5. Accounts payable
  6. Payroll

Even if a small or medium business hires an outside accountant for all your business book-keeping, payroll management and Tax management. we should understand the basic elements of the accounting system. Before that you need to search business accounting and tax software on the market. Because nowadays, we can use the "GovReports" Ledger and tax compo software pack and get better business growth.

Chart of accounts:

This is the first step in setting the business accounting system for your business. This chart of accounts only will decide what accounts and tax you have to track for your business. If you need easy identification you can choose a business account number. In general two or three number systems will suffice for most of the business.

General ledger

After chart of accounts we need to establish the general ledger of the system, which is the engine that actually runs your business on a daily basis. Every account that is in your chart of accounts will be included in the general ledger and also in the same order as specified in chart of accounts. General ledger does not include every single accounting entry for a given period, it reflects only the summary of the transactions made. Important components for any general ledger are source documents.

General ledger entries are double entries.

As an accountant we need to consider one financial transaction as two money traction which means when sending money to one particular account, money goes to one account to another account. So you need to double entries. When you sell an item from your business, you record a sale income but must have a journal entry for accounts receivable.

Accounts Payable

Accounts Payable sub ledger is similar to the one that used to track accounts receivables. The two differences are the account payable occurs if you purchase inventory or other assets on credit from a sub layer. It is important to track the accounts payable in a timely manner. Many supplier relationships with your business may be damaged due to poor accounts payable systems.

Payroll

This is one of the very difficult subjects for a new business enroller. There are many federal and state laws regulating what you have to track related to a payroll. Most of the business owners are choosing outside payroll services for their business use. But as per my mindset I will not recommend you. Because nowadays you can see the user-friendly cheap and best cloud supports accounting and tax software. It saves a lot of time for the business owner to keep out of trouble with the law and saves time that can be devoted to something else in the business.

Cost Accounting

Cost accounting is a process of allocating the costs associated with generating a sale, both direct or indirect. Direct costs include material and labor. Indirect costs include all other costs associated with generating the product. By knowing the total costs associated for generating a product you can determine the items which are profitable to make.

Financial Statements

Most business accounting ledger software packages offer capability of producing balance sheets, income statement and cash flow statement. But GovReports Ledger software provides another one compo pack tax software. With the help of business ledger software and GovReports STP software, you can lodge your unlimited employees payroll preparation and lodgement.

Telephone: + 1300 65 25 90

Fax: + 61 2 8078 6146

https://www.govreports.com.au/Business.html

PO Box 8413, Parramatta Westfield,

NSW 2150 Australia.

About the Author

Every small and medium business needs to maintain the accounting and tax system has the following key components.

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Author: Benny Jackson

Benny Jackson

Member since: Feb 15, 2021
Published articles: 1

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