Your Business With James Caan 2017 - 73
Accounts receivable means your
customers' unpaid invoices. It's
important to keep on top of this
money owed to your company
as it can quickly cause cashﬂow
problems. An increase in accounts
receivable is good when it means
an increase in revenue, but not
when it's due to payment delays.
RECORDING DEPRECIATION AND
OTHER ADJUSTING ENTRIES
Adjusting entries need to be recorded
in order to produce accurate ﬁnancial
statements. This may relate to accrued
expenses such as a late utility bill, for
example, while a depreciation expense
- such as oﬃce equipment - would
be split over the lifetime of the asset.
PROVIDING FINANCIAL REPORTS
A ﬁnancial report, or statement, is
a formal record of your company's
ﬁnancial activities and is essential
to give people an overview of your
business - and where it's heading.
It's important to show progression
and set targets so you can measure
performance over time.
USING SOFTWARE PACKAGES
Bookkeeping doesn't have to be done on
paper. There are plenty of accounting
software packages that can help make
life easier, including QuickBooks,
Sage One, Xero and Zoho Books. Most
are cloud-based and mobile-friendly,
and should work on any device.
Bookkeeping needs to be kept up
to date, so if you can't bear to think
about it, using another company to do
your books for you may be an option. It
will save you time and possibly money,
and you'll beneﬁt from bookkeeping
expertise, although an outsider won't
know your business or customers
as well as you do. Something else
to think about it is that they won't
be available around the clock like
someone who is working in-house.