Home > Business > Running your business > Financial accounting

Financial accounting

Maintaining an accurate, up-to-date record of a firm's finances is essential to its operations and its success.

Balancing your bank account
When you enter records of money paid into and out of your bank account into the cash book, there is a delay of at least a couple of days until these transactions are cleared through the banking system and appear on your bank statement.
Balancing your sales (debtors) control account
In a sales control account, the total of outstanding invoices at the beginning of the period and invoices raised during the period, less payments received for invoiced income, will give a balancing figure of invoices still outstanding at the end of the period - your debtors.
Balancing your purchase (creditors) ledger
In a purchase ledger control account, the total outstanding invoices at the beginning of a period and invoices received during that period, less payments made for invoiced supplies, will give a balancing figure of invoices still outstanding at the end of the period - your creditors.