Understanding basic accounting

Accounting forms the foundation of every successful business. Every business needs a system to be accountable for the utilisation of funds in order to keep its cash flow in smooth operation. The universal system used to keep financial records and reports of all funds spent, received and owed to a business is basic accounting, and keeping this system streamlined requires careful planning and implementation of processes.

Even the most basic accounting systems need the stability of meticulous processes to be followed. Financial records are used to determine how well or poorly a business is doing in terms of profit and loss and need to be kept up to date and accurate for a number of reasons, namely:

  • to keep track of monthly and annual spend
  • to help financial managers plan an effective company budget strategy
  • to show shareholders and donors how every cent was used
  • to avoid losing money due to mismanagement, corruption or theft

A software suite such as QuickBooks accounting software allows businesses to manage and keep track of all fundamental financial records with its DIY basic accounting features. Each program offers a comprehensive accounting system to help businesses balance their books. Continue reading to learn how your business can benefit from QuickBooks accounting software.

Basic accounting is crucial to your business

An effective basic accounting system acts as an unseen supervisor or manager, ensuring that all procedures are running smoothly in order to achieve financial success. The following financial statements form a basic accounting system and are essential to the financial success of any business:

  • Income statements – Records all funds that are received by a business such as generated sales, fundraising, donations and grants.
  • Expenditure reports – Records all funds that is spent by a business such as operating costs, office rent, costs for stationery, workshops, media production, catering and bank charges.
  • Balance reports – These are records that state the remaining funds that are left over at the end of each month, after all expenditure has been paid to its relevant parties.

Managing expenses and income statements is easy with the help of a basic accounting system. QuickBooks accounting software provides you with the ideal software program suited for your type of business. While QuickBooks SimpleStart is designed for small to medium start-up businesses, QuickBooks Pro offers enhanced features for established companies with complex financial statements and QuickBooks Premier provides all businesses with the assurance of an advanced accounting system.

QuickBooks accounting software provides a simple solution for basic accounting

Running the financial system of a business can be challenging at times, especially if you haven’t spent years mastering the accounting language. While employing a full-time accountant will help your business achieve financial success, it may also be expensive to maintain a qualified accountant’s salary. QuickBooks accounting software is ideal for small-to-medium businesses because it employs a solid accounting structure that can help you to streamline your businesses financial recording processes with quick and effective solutions. With QuickBooks SimpleStart, QuickBooks Pro and QuickBooks Premier, our easy-to-master software programs cater to the needs of every type of business.