Maintaining accurate and up-to-date records of financial transactions is an essential task for bookkeepers.
To ensure success, it is important to establish a system to track and monitor incoming and outgoing payments.
Whether you choose to go with accounting software like NetSuite or opt for manual bookkeeping, the key is to ensure that all transactions are properly recorded.
To keep track of accounts receivables, bookkeepers should create a ledger that records all customer invoices.
This ledger should include the customer’s name, invoice number, date of invoice, amount of invoice, and any other pertinent information.
The bookkeeper should then track payments made by the customer and update the ledger accordingly.
Similarly, to keep track of accounts payables, bookkeepers should create a ledger that records all vendor invoices.
This ledger should include the vendor’s name, invoice number, date of invoice, amount of invoice, and any other pertinent information.
The bookkeeper should then track payments made to the vendor and update the ledger accordingly.
To ensure accuracy, the bookkeeper should reconcile the accounts receivable and accounts payable ledgers with the general ledger on a regular basis.
This process should be done at least once a month, but ideally should be done more frequently.
Additionally, the bookkeeper should review all invoices and payments to verify the accuracy of the amounts, dates, and other information.
Following these steps can help bookkeepers maintain a close eye on accounts receivables and accounts payables and ensure that all financial transactions are accurately recorded.
With the right system in place, it is easy to make sure that all transactions are properly tracked and monitored.