If you are a guy who don’t have experience of doing accounting and want to manage you books without reading of too much accounting. This blog will helpfully help you to accounting for your property management companies, Researches, Real Estate companies or other business you are doing.
There are some which are necessary activity for a business and you can categorize you accounts in this activity.
· Revenue.
· Expenses.
· Bank Recompilation.
We do not Include balance item in this blog because for a guy who is new in accounting Profit and Loss enough as a Beginner.
Revenue- Revenue is a part of Income which is received by your company. The Income received always show on credit side of profit and loss account.
For a property management company revenue is what he earned from Rent payment his tenant now you have to post the received income on your books. The general rule for posting revenue entry for cash Basis accounting is Debit the Bank account for the amount you have received and credit the Rental account.
Sales Accounting Entry for a property management company on Cash Basis.
Bank Account Dr.
Rental Income. Cr.
Sales Accounting entry for Research companies on Cash Basis
Bank Account Dr.
Research Income Cr.
Sales Accounting entry for Real Estate companies.
Bank Account Dr.
Real Estate Companies Cr.
Expense Account- Expenses are the part of expenses which help to run day to day business activities for different business there could be different expense name to run day to day business
Debit the expenses which you paid for day-to-day expenses and credit the Bank accounts. These entries will same for all business and each kind of nature.
Expenses Accounts Dr.
Bank Cr.
Bank Reconciliation: Bank reconciliation is a very Important task for a business. If you do not do Bank reconciliation for your books then than you can get on trouble because there is various transaction in your bank which you can miss.
Doing Bank reconciliation very is easy you just need to extract your bank statement from Bank site or get Bank statement in PDF form your Bank and export the Bank ledger from your software and match both statement.
Comentários