By Lita Epstein
Bookkeeping For Canadians For Dummies contains info on maintaining a tally of transactions, knowing stability sheets, and preserving ledgers or journals. It covers tips on how to create monetary statements and likewise exhibits how you can function debts for businesses. Small enterprise vendors and staff will locate that Bookkeeping For Canadians For Dummies additionally comprises appropriate, up to date tax information. additionally, the booklet teaches the right way to realize the assets and liabilities to the company.
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Extra resources for Bookkeeping For Canadians For Dummies (For Dummies (Business & Personal Finance))
Other common terms Some other common bookkeeping terms include the following: ✓ Accounting period: The time during which you track financial information. Most businesses track their financial results on a monthly basis, so each accounting period equals one month. Some businesses choose to do financial reports on a quarterly basis, so the accounting periods are three months. Other businesses only look at their results on a yearly basis, so their accounting periods are 12 months. Businesses that track their financial activities monthly usually also create quarterly and annual reports (a year-end summary of the business’s activities and financial results) based on the information they gather.
Businesses that track their financial activities monthly usually also create quarterly and annual reports (a year-end summary of the business’s activities and financial results) based on the information they gather. ✓ Accounts Receivable: The account used to track all customer sales that are made on credit (or on account). The terms credit sales and sales on account refer not to credit card sales, but rather to sales in which the customer receives credit directly by the store or business and for which the business needs to collect payment from the customer at a later date.
The balance sheet accounts, and the financial report they make up, are so called because they have to balance out. The book value of the assets must be equal to the claims made against those assets. ) 39 40 Part I: Basic Bookkeeping: Why You Need It We discuss the balance sheet in greater detail in Chapter 18, including how you prepare and use it. The following sections, however, examine the basic components of the balance sheet, as reflected in the Chart of Accounts. Tackling assets First on the chart are always the accounts that track what the business owns — its assets.