Start recording your financial statements by month is a wise approach to begin the process, Imashi. I'll share some insights to ensure you can have accurate and organized data moving forward.
To begin with, gather all your sales receipts, invoices, bank statements, and expense records. Organize and prepare these documents by month for entry into the software.
Once you have entered the transactions, ensure accuracy by comparing them with your bank statements in QuickBooks. Make adjustments for discrepancies.
Generate the following reports to help you verify your data and monitor your finances effectively:
- Income Statement (Profit and Loss): Compile all revenues and expenses to calculate net profit or loss for each month.
- Balance Sheet: List all business assets, liabilities, and equity to display the financial position. This report tracks running totals from your first day of operations. It can be customized to display the balances as of a specific date, providing a snapshot for targeted financial analysis at any particular moment.
- Cash Flow Statement: Analyze the inflow and outflow of cash, ensuring the business liquidity is maintained.
- Trial Balance: Identifying discrepancies will help you ensure your accounts are balanced.
- Accounts Receivable and Payable Aging Reports: Tracks outstanding amounts from customers and due payments to vendors, aiding in efficient cash management.
Additionally, you can utilize custom reports in QBO to gain deeper insights into your business's finances, which assists in more informed decision-making.
If you need more assistance in managing your financial statements, reach out to us at any time. We're here to guide you every step of the way!
