Btn 7 - Geiger

BTN 7-4 Page 312 TO W dyingy Geiger picture June 19, 2011 SUBJECT manual of arms of arms of arms of arms Accounting Modifications for grow Business M E M O R A N D U M This memorandum is to advise you of the top hat possible elbow rooms for you to modify your incumbent manual method of flyering arranging to befit the expanded strain activities for your retail store. pursuant(predicate) to our conversation, you worldwidely contract your goods on credence using secure orders, and your gross gross revenue be primarily cash.You currently keep your manual history dodging using a habitual diary and a general record book, and you make wiz summary entrance for cash sales at the relief of separately concern day. Due to increase demand for your products and higher(prenominal) sales volume, including impute sales, maintaining the accounting constitutions has lead time consuming, notwithstanding you would like to continue with your manual agreement. off er me to provide clever knowledge that ordain assist you in continuing your manual system in the intimately competent way.The accounting tuition system is one that collects and processes relevant selective culture from proceeding, and organizes them into relevant reports. This system is besides employ to report and record the exchange of goods and/or services. It is little for you to fancy how and what transactions atomic number 18 occurring in your backup. A sm all blood line like yours heap be potent with a manual process and with the drill of special diarys and marcher account books.With the issues you mentioned in mind, nigh(prenominal) of your transactions brush aside be categorise into the special journals with the function of four idiosyncratic journals to complement the general journal you be currently using. particular(prenominal) journals are apply to record and patch transactions, and are uniquely designed for severally business, but for most merchandising companies, the journals utilize are sales journals, for save sales on comm give upation cash benefit journals, to record sales made by cash purchases journals, for put down goods obtained on cite and cash disbursements journals, for recording payments made by cash.You are also able to example this format for your record book. In order to translate special journals, it is essential for you to understand that a supplemental daybook is a bring up of detailed information on special(prenominal) accounts of psycheistics with some park in the general ledger. One captious ledger is Accounts Receivable, which stores transactions of individual customers. This ledger pull up stakes come about relevant information on the individual customer, the date of purchase, the derive paid, and the amount owed.The otherwise important ledger is Accounts Payable, which stores relevant info of individual suppliers. You would bear this ledger with uniform informatio n gleaned from my operating instructions regarding the Accounts Receivable ledger. These ii ledgers are critical for recording your data, and they conk the gather up for post horse same in the general ledger. The song at the dirty dog indicate the single accounts delineated in your Chart of Accounts.You are already summarizing each cash sales at the end of each business day, but my advice would be for you to continue recording the daily sales and purchases because it is necessary for you to symmetry your subsidiary ledger with your general ledger. quotidian reconciliation will enable you to pass through any and all discrepancies more easily. full(a) your sales journal accounts at the end of each calendar month and this amount should be the amount in the debit tug in the Accounts Receivable.Regarding the sustain column, you will come across more consistency in your armoury system if you line this procedure. I squeeze outnot punctuate the importance of proving the a ccount dimensions in the general ledger and subsidiary ledgers periodically for accuracy after posting. You will first civilise a footrace proportion of the general ledger and verify that all your debits are in balance with your credits. Additionally, Prepare a plan of individual accounts and amounts. This is referred to as scrutiny the subsidiary ledger. regress a schedule of your customers accounts to show the balance owed. If everything balances, the accounts are put on correct. This method of accounting information system might be challenging to you at first, but I assure you that this is the most advantageous way for you to maintain your manual system. It is imperative you balance your journals and ledgers every day, without fail, to debar any unessential discrepancies. The example I have provided should be a vanguard start and I am perpetually available if you need additional information, or if I can be of get ahead