Financial Statement Preparation

Every organization has a general ledger that lists your accounts and the balance of every account. In this instance, account refers to the different types of financial components a business can have, which includes assets, liabilities, revenues, expenses, and equities.

There should be individual lines for outflow and inflow of money under each account, so every time a transaction is made (paying a bill or making a sale, for example), it should be recorded in the correct account in the general ledger. You then need to balance the accounts properly. When you keep your general ledger up to date, you’ll always know how much money your company actually has.

For further questions about Phoenix bookkeeping accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.