How to Record Business Financial Transactions Neatly and Easily
One important activity that must be carried out by the company is recording transactions. Transaction recording is the basis in the accounting process. Without recording the transactions that have been made, you cannot make financial reports. In fact, as we know, financial statements are the duty and obligation of the company to its stakeholders.
In addition, by taking notes and making financial reports, you will get many benefits, such as making an assessment, determining the evaluation or improvement steps, helping decision making, evaluating the company’s performance, and many other benefits that can still be obtained.
Unfortunately, there are still many business actors, especially small businesses, which have not recorded many transactions that they have done. Some of the reasons they mentioned are because it is difficult and complicated. Whereas a company can be said to grow well if it has neat, valid, accurate, and easily legible financial reporting. For more details, the following is a guide to how to record transactions easily and neatly.
Gathering Transaction Evidence
The main step that must be taken to record the transaction is to collect all the evidence of the transaction that has been done. Proof of transaction is very important because it is the basis for recording transactions. As for examples of proof of transactions such as invoices or invoices, receipts, proof of receipt, proof of payment, receipts, certificates, agreement, notes, checks, and other transaction evidence.
Identification of Authenticity Evidence
Evidence that has been collected does not mean that all can be recorded. Evidence that may be recorded in the books is original evidence so the second step after collecting evidence is that you must ensure the authenticity of the evidence of the transaction. This second step is an important step because it will relate to subsequent processes, especially the audit process.
If you get caught recording transactions with false evidence then the risk will be very large. Your business can experience many problems until it might eventually be frozen. Therefore, make sure that the recorded evidence is original, not fabricated or fake. Especially with the technological sophistication, making or imitating evidence is an easy thing to do, so you also need to be vigilant.
The way that can be done to check the authenticity of the evidence is by cross-checking between parties, both internal and external parties. In addition, you can also check it by looking at company information, signatures or stamps as proof of authenticity.
Through the Right Procedure
As you all know, accounting is a process, so to do this you also have to go through steps or steps in sequence correctly.
The next step that can be done is journalizing transactions. In order for the recording process to be efficient, you should always record every transaction in the journal after the transaction is done. Don’t wait until the transaction has been collected for a long time because you can forget to record it or the transaction evidence can be lost.
By directly recording it, you can also prevent mistakes when copying in a ledger.
Move Notes to Ledgers
Ledgers are records of transactions that are grouped according to their account. Posting a journal in a ledger will make it easier for you to make financial reports. So you should not underestimate the ledger.
Make a Balance Sheet
If you have recorded financial transactions neatly, then you can make a balance sheet. This activity aims to determine whether the total asset-side balance (debit) is the same as the liability-side balance (credit). If it is not balanced, it means there are transactions that have not been recorded or there are errors in counting.
You can correct it before making financial statements. Thus making a balance sheet can also reduce your risk of making wrong statements. Because if you find out the mistake when it becomes a financial statement, of course, your work will be more and more.
Making financial reporting
If all the steps above have been done properly and correctly, then you can arrange your financial statements neatly. All you have to do is write neatly and follow the rules or standards of applicable financial statements, such as income statements, statements of changes in capital, balance sheets and cash flow statements.
Keeping track of transactions neatly is not difficult. You just need to spend time and energy in the process. However, now you don’t have to worry about losing a lot of time and energy just to record transactions neatly.