Fundamentals You Must Know About Bookkeeping Accounts

Fundamentals You Must Know About Bookkeeping Accounts

The famous American business magnate Warren Buffett once said that “Accounting is the language of business”. One must understand the nuances of accounting and bookkeeping to run a successful business.

Everyone who is running a business diligently looks for accountants and bookkeepers. This is the reason online bookkeeping jobs in India are also becoming a trend, especially after the pandemic.

Bookkeeping can get quite tedious, and complex and is rarely done by novices. Efficient bookkeeping can increase the scalability of any business. But for that, your basics of bookkeeping need to be brushed up.

Deciding between single-entry and double-entry bookkeeping

One of the first fundamentals that should be clear for any good bookkeeper is to choose between single-entry and double-entry bookkeeping. In single-entry, there is only one entry for every financial transaction. Double-entry bookkeeping takes a more scientific approach.

Basics Of Bookkeeping Accounts That One Should Know To Scale A Business

Bookkeeping is indeed a complicated process. Let us see some basics of bookkeeping accounts that need to be followed while running a business.

  • Accounts Receivable

If your company sells any products or services and doesn’t get paid immediately then you will have “recievables”. Make sure you are keeping a track of accounts receivables so that there is no discrepancy in the financial statements.

  • Accounts Payable

No business ever likes to spend unnecessary money. If your bookkeeping is not up to the mark then chances are you are spending unnecessary money. Keeping track of accounts payable will make sure payments are done on time.

  • Sales

The sales account keeps track of every incoming revenue. Recording sales on time will help you understand where does the business stand.

  • Payroll Expenses

For many businesses payroll expenses can get a little expensive. Keeping accurate records is extremely important, especially during tax seasons and other government reporting requirements.

There is a lot of software that works like this easily. You can operate this software even if you are in online accounting & finance Jobs.

  • Owner’s Equity

This account basically records an owner puts into the business. It can also track the liabilities and assets of the owner or owners.

  • Loans Payable

This is an essential account for any organization. A company must know the loan it has taken and the money they need to pay back. If you are a business owner you definitely do not want debts.  

Choose Munim Biz For Exploring The Best Online Accounting and Bookkeeping Jobs

We hope this blog has helped you comprehend the basics of a bookkeeping account. If you are an aspiring accountant who is looking for online bookkeeping jobs in India then Munim Biz is the best platform for you. Get in touch with reliable clients who are looking for talented accountants just like you. Download the app today!