BOOK KEEPING
It is collecting and sorting the source documentsformally it is the systematic recording and organizing of financial transactions in a company.
It is the recording, on a day-to-day basis, of the financial transactions and information refers to a business.
It ensures that records of the individual financial transactions are correct, up-to-date and comprehensive. Accuracy is therefore important to the process.
Today book keeping methods are performing by the machine but some places even book keeping perform by the book keeper.
STEPS OF BOOK KEEPING
Identification – it is a process of book keeping it means collect all the purchase and sale bill, invoice bill, claque payment, all type of transactionare kept secure.
Measuring – it is important process of book keeping.
Recording – The entire purchase and sale bill, invoice bill, claque payment, all type of transactionare recorded in abook.
Daily basis in your book/record the relevant data/information from the source document.
It basically record in a journal entry date wise daily basis.
WHAT IS GENERAL JOURNAL
It is record keeping book which records all the purchase and sale bill, invoice bill, claque payment, all type of transaction in the daily basis.
Classification – posting data into ledger or account posting sale and purchase basis or posting inward and outward basis.
It is basically create at the end of the periodEnd of the month
End of the week, end of the month
KEY POINTS ABOUT BOOK KEEPING
Objectives – maintainkeep proper and systematic record for accounting.
Stage in accounting – it is primary stages of accounts.
Nature – it is basicallyapart nature when accounting is a science.
Function – mainly book keeper kept the record but now machine perform the same work in very short time with accuracy.
Relation – it is basis of accounting.
Time – It perform immediate
Net result – book keeping not provide the net result.
ACCOUN TING
Accounting is how your business records, organizes, and understands its financial information.
Accounting as a big machine that you put raw financial information into—records of all your business transactions, taxes, projections, etc.—that then spits out an easy to understand story about the financial state of your business.
It discuss you whether or not you’re making a profit, what your cash flow is, what the current value of your company’s assets and liabilities is, and which parts of your business are actually making money.
BILL ING
An act or instance of preparing or sending out a bill or invoice.The total amount of the cost of goods or services billed to a customer, usually covering purchases made or services rendered within a specified period of time.
Billing mainly used in inward and outward control.
STEP OF ACCOUNTING
Basically summarizing, analyzing, interpreting, communicating in four steps are follow by the account practitioner.
KEY POINTS ABOUT THE ACCOUNTING
OBJECTIVES – engage the financial situation and communication.
STAGE – it is secondary stage followed by book keeping.
NATURE – if book keeping is art so accounting is a science.
FUNTION – it involves expert human being in analysis and interpretation.
RELATION – it is the entire process.
SECIAL KILL – require special skill due to its analytical and complex nature after gap.
TIME – after a gap it perform
NET RESULT – in this process final result are found out.
ACCOUNTING CYCLE
WHO USE THE ACCOUNTING DATA
EXTERNAL USE
- Investor
- Creditors
- Customers
- Suppliers
- Tax authorities
- Regulatory authorities
INTERNAL USE
- Management
- Employee
KEY NOTES
Date company name contact no should be mention.
Customer details should be mention.
Invoice no should be mention it’s very important.
Terms and conation should be mention like refund policy, warranty etc.
Authorizestem and signature should be mention.
CLASSIFICATION OF BILLING
Billing classifications are used to group similar free text invoices for processing and viewing. Billing classifications include the following information:
Billing classification code (up to 15 alphanumeric characters)
Description (up to 60 characters)
Terms of payment
Interest information
Number sequence for invoice number
Number sequence for credit notes
Number sequence for collection letters
Billing codes that can be assigned to invoices that use this billing classification
BILLING CODES
Billing codes provide a set of default billing values and rates for a defined type of service or charge. Billing codes include the following information:
Billing code (up to 10 alphanumeric characters)
Description (up to 60 characters; this will print on the invoice)
Effective date and expiration date
Sales tax information
Interest information
Accounting distribution
Rate information
Project information
Custom fields
VOU CHER
It is often a renumbered from used in the accounts payable department to standardize and enhance a company internal control over payments to itvendor and service providers. A voucher is usually prepared after a vendor invoice has been matched with the company purchase order and receiving report.
Supporting Document for Voucher
- All transaction records
- Invoice bill
- Equation
- Purchase order
- Revaluation
- Good receive document
Key Points of Voucher
After the supporting document receive you prepare then manual voucher
After the annual voucher you should create acomputerized vouches as like manual voucher.
At last you attach all supporting documents in your manual voucher.
Invoice no and date is the most important to create voucher.
Assistant account and account manager sing is very important for the voucher.
TYPE OF VOUCHER
It is basic two types – Accounting voucher,inventory voucher. Let discuss more
ACCOUNTING VOUCHER
- Contra voucher
- Payment voucher
- Receipt voucher
- Journal voucher
- Journal voucher
- Sales return voucher
- Debit note voucher
- Reversing journal voucher
- Memorandum voucher
INVENTORY VOUCHER
- Purchase order voucher
- Sales order voucher
- Rejection inward voucher
- Rejection outward voucher
- Stock journal voucher
- Delivery note voucher
- Receipt note voucher
- Physical stock voucher