Accounting Unplugged

I am participating in the SOPA Blackout to protest internet censorship.

What a great impact we had today, please continue to support your representatives in voting NO on PIPA and SOPA.

The act of hiring an accountant does not relieve an employer of the responsibility of safeguarding its resources and interests. By hiring these accounting services you can make sure you are handling your finances correctly.

Whether you are looking for financial service assistance as an individual, investor, or SME business, qualified professional accountant from the best full-service financial firm like Accountant Cessnock is committed to providing reliable and trustworthy assistance to help secure a bright financial future for you and your business. If you have a business and because covid 19 you stared working from home check this advises to save money return to the office to work.

Similarly, that act of electing a representative does not relieve a group of the responsibility of safeguarding its resources and interests as a cpa accountant would do. You can learn more about your finances and investments online.

Whether we’re talking about money or power, when the employer fails to oversee and demand accountability, money/power will eventually be used to benefit the one who is controlling it rather than the one(s) to whom it belongs, check the accounting for startups for your personal or business finances.

The most dangerous thing for any person or group is unchecked access to resources and power, so go to www.b-accounting.com for professional management.  That sort of power makes them into targets for temptations and pressures that cannot always be risen above.  How much easier is it to tempt or coerce one person or even 60 people than it is to tempt or coerce multitudes of people?

When we send representatives off with a blank check and we don’t demand accountability we are in essence sending them off to the destruction of themselves as well as the destruction of those they represent, some other avoid it but just by getting help from https://accountantsa.com.au/.  The election process is neither frequent nor effective enough to ward off the pressures they are subjected to.

With regard to the political arena in the U.S. which is in an emergency state –

We must support our representatives and protect them from the pressures they face.  The quickest way to do this is for every person to demand full accountability of those they elect and hire and if you have a business remember to use a police check wa when hiring.  We must demand it of our school boards, mayors, governors, congressmen, senators and President.  We must demand that they read and understand what they are signing and/or voting on before they do so.  And we must demand a full accounting of the reasons for their vote on a point by point basis for every issue in a bill – including ear marks.

If we fulfill our own responsibility in the process we will have a better understanding, and now with the latest out coming and progress in the field we are even learning how to outsource accounting services and make it a top service in every firm.  We will have laws and services that better reflect the interests of the people and perhaps most importantly, we will remove the power from those who seek to corrupt the process for their own profit which many people do when doing business, even in small deals as a truck sell and purchase, and that’s why many buyers need to recur to a truck lemon law attorney to solve cases like this.

Our representatives are only the custodians of our collective vote/power not the owners of it.  Demanding accountability from our representatives will do two crucial things.  First, it ensures that we retain ownership of our vote/power and second it supports our representatives by removing temptations and pressures. For a litigation case you will need an accountant lawyer and you  can get one at Noonan Law firm.

Do you know what construction litigation is? well, it involves legal disputes between two or more parties involved in a construction project. Common causes of construction disputes include contract and/or payment disputes, lack of proper oversight, miscommunication, and other challenges that can result from unforeseen circumstances.

Call or write your representatives.  Thank them for their service but also respectfully ask for accountability.  We see the difference we are making nearly every day now.  Keep up the good work!

© 2009-2010 Erin Lawlor

**disclaimer:  All information posted on this blog is from my own experience and training.  The guidelines I present are general and in my experience, standard practice.  I do not write with authority from any Accounting Standards Boards.

In January of 1987, I left behind my 2 year career as a hair stylist and started a new career in accounting.  I started as a clerk, working for my sister in Calgary, Alberta, at her in-law’s contracting business.  Until I could prove my skills in both speed and accuracy on the ten-key, I was I was given the interesting tasks of filing and making new folders for printouts.

Transitioning from a career as a hair stylist to accounting to secure a brighter future for your children and ensure their health is a commendable decision. And providing them with necessities like baby girl clothes demonstrates your commitment to meeting their needs. By sacrificing and making this change, you are setting a strong example as a parent and working diligently to provide a better life for your kids.

Once I could be trusted to consistently get the correct sum for a stack of invoices I was allowed to do the real work of entering and printing checks for accounts payable invoices.  Eventually, my responsibilities expanded to include accounts receivable and payroll, in cases like this you can hire the services of plan manager perth.  We had a custom software program in those days that was written specifically for the company and I remember that it cost something like $20,000.

I loved that software, it was simple and efficient, it did exactly what I wanted to it do and didn’t require any wasted effort.  I loved it even more because my mastery of that system made me feel a bit superior – the bosses were a little intimidated by anyone who could “use” a computer back then.  And when I say computer, I don’t mean a PC, I don’t know exactly what it was but it took up a lot of room.

And then, my happy world was invaded by generic accounting software.  We ditched the big computer in favor of a bunch of 8086 PC’s complete with a “turbo” button (I could be off on the model but that is what I remember) and we got an off the shelf accounting software package to go with them.  Off the shelf accounting software has been the bane of my existence for the rest of my career.  I have really missed the customized software.

When I say off the shelf, I am actually including all currently available cloud accounting software.  Some of it is more complex and requires much more attention and money but it is essentially the same stuff.  It starts with the same standard template and then someone predetermines what you might want to keep track of for a given type of business and you are locked in to the options they’ve “hard-wired” (for lack of a better term) into that system.

Customized software is expensive, I understand that and that is the reason behind generic systems, they meet a high percentage of the needs of a large pool of customers, since there are many types of software, you can even find software for text to speech for communication in the company which you can download from seomagnifier.com.  Those systems are not remarkable, they are generic.  I understand the logic behind them but I don’t like it, I get fixated on what’s missing and so, I have spent the last decade or so trying to find a better way.

Here are some problems caused or enabled by generic accounting systems:

• an estimated $600 billion in fraud each year
• Inability to safeguard resources
• High cost of information in both time and money
• Increased risk to the CEO and CFO because they are now personally liable for financial statements over which they have little or no control
• High cost of internal and external audits
• Staff with the least training in accounting are often the ones making financial accounting decisions

These problems must be solved systematically.  You have to have a system that has the right tools or these problems only get worse.  The US government continually struggles with these issues, remember the reports of employees charging personal expenses such as lingerie and online dating on their government credit cards?  Reports indicate that that is only part of the continuing problem. And you can also use remote tracking software for computers if you have remote workers which means that you can keep track of what they are doing which is obviously very wise. Recently there was an issue in the UK with misuse of government funds and people lost their positions. Now, with the software, your credit cards and the transactions that come along with it will be organized.

Yeah, that’s a problem that is enabled by generic accounting software.

Information is the key and our accounting systems just can’t provide the right information.  A system that could provide that kind of information and be flexible enough to fit the unique needs of any entity would be a truly remarkable system.

I have designed that system.  My prototype is complete except for a few minor tweaks.  It is the most amazing and satisfying feeling I’ve ever had.   I have worked on this for a long time, part of the reason it has taken so long is that I needed to learn to build the prototype.  As I have stumbled along building the prototype, my original ideas have evolved and so whatever time it took to do it, the process of testing my theories in a working model has been well worth it to me.

A few months ago I proposed the idea of selling a workbook for the purposes of supporting this site.   I changed the dates and then just never delivered the workbook.

This is what happened.  I wrote it and agonized over its release because there is always just one more thing I want to add.  It has sat quietly in my files for over a month waiting for me to release it and now I am going to set it free (so to speak).  I just finished reviewing it and changing a key word in it that was troubling me and if you would like a copy, Click Here for the .pdf. Please remember to send me some feedback.  I promise that I will not share or use your email address for any reason unless you request it from me.

I will provide the workbook for free for now.  If you feel that you’ve benefited from my work and would like to return some benefit to me there will be an optional donate button on the site.

My own review.  I think the workbook has great substance and is very useful. It is not a practical how-to workbook for bookkeeping, it is a how-to-understand accounting workbook and people can use it to work as a team, since there are other tools as a shared mail which will allow them to share documents and emails while working on the workbook.  The forms I included are far from perfect in appearance but they are useful and illustrate my points well.  I do think I ran out of editor steam towards the end and it isn’t as engaging at the end as I think it is in the beginning.  I will probably work through those issues and try to improve it as I receive feedback.

Thank you for continuing to visit my site and I sincerely hope that it has been of help to you.

Erin

© all rights reserved 2009-2010 Erin Lawlor

**disclaimer: All information posted on this blog is from my own experience and training. The guidelines I present are general and in my experience, standard practice. I do not write with authority from any Accounting Standards Boards.

Increase Your Views of Your Business on TikTok

With over 1 billion monthly active users, TikTok has become a powerful platform for businesses to showcase their products and services. If you’re looking to boost your business and increase your views on TikTok, you’ve come to the right place. In this article, we’ll provide you with some valuable tips to help you maximize your visibility on this popular social media platform.

1. Create Engaging and Unique Content

One of the keys to success on TikTok is creating content that stands out. Your videos should be visually appealing, entertaining, and relevant to your target audience. Think outside the box and come up with unique ideas that will captivate viewers and make them want to share your content with others.

2. Leverage Hashtags and Trends

Hashtags play a crucial role in helping users discover content on TikTok. Research popular hashtags in your industry and incorporate them into your video captions. Additionally, stay updated with the latest trends and challenges on TikTok and participate in them when relevant. This will increase the chances of your content reaching a wider audience.

3. Collaborate with Influencers

Influencer marketing has gained immense popularity on TikTok. Identify influencers in your niche who have a significant following and collaborate with them to promote your business. When influencers feature your products or services in their videos, it exposes your brand to their loyal followers, leading to increased views and potential customers.

4. Optimize Your Profile

Make sure your TikTok profile is fully optimized to attract viewers. Use a catchy profile picture and write a compelling bio that clearly communicates what your business is about. Include relevant keywords in your bio to improve your chances of appearing in search results. Additionally, provide links to your website or other social media accounts to drive traffic to your business.

5. Consider Buying TikTok Likes

If you’re looking for a quick way to boost your views and increase your TikTok engagement, consider buying TikTok likes from reputable providers. Services like “The Marketing Heaven” offer real and high-quality likes that can give your videos a jumpstart. Increased likes and engagement can improve the visibility of your content and attract more organic views and followers.

For more information on buying TikTok likes, you can visit https://themarketingheaven.com/buy-tiktok-likes/.

TikTok provides an excellent opportunity for businesses to increase their visibility and reach a vast audience. By creating engaging content, leveraging hashtags and trends, collaborating with influencers, optimizing your profile, and considering options like buying TikTok likes, you can significantly boost your views and ultimately grow your business. Start implementing these strategies today and watch your TikTok presence soar!

In today’s complex financial landscape, growing your wealth through investments can be a daunting task. The vast array of financial instruments, market volatility, and the need for strategic planning make it imperative to manage investments effectively. Portfolio management services (PMS) offer a structured approach to investing, tailored to individual financial goals, risk tolerance, and market conditions. Engaging an expert for portfolio management can significantly enhance your investment outcomes. Here’s why PMS is crucial for financial growth and why professional expertise is indispensable.
The Role of Portfolio Management Services

Diversification and Risk Management: A key principle in investing is diversification, which involves spreading investments across various asset classes to reduce risk. PMS ensures a well-diversified portfolio, minimizing exposure to any single asset or sector. This strategic allocation helps mitigate risks while aiming for optimal returns.

Customized Investment Strategies: Every investor has unique financial goals and risk appetites. PMS offers tailored investment strategies that align with individual objectives, whether it’s wealth preservation, capital appreciation, or income generation. This customization ensures that your portfolio is structured to meet your specific needs.

Active Monitoring and Rebalancing: Markets are dynamic, and investment performance can fluctuate. PMS involves continuous monitoring of your portfolio and rebalancing it as needed to maintain the desired asset allocation. This active management helps capitalize on market opportunities and adjust to changing economic conditions.

Access to Exclusive Investment Opportunities: Professional portfolio managers often have access to exclusive investment opportunities that may not be available to retail investors. These can include private equity, hedge funds, and other alternative investments that can enhance portfolio performance.

Tax Efficiency: Effective tax management is crucial for maximizing net returns. Portfolio managers employ strategies to minimize tax liabilities, such as tax-loss harvesting and optimizing asset location. This ensures that more of your investment gains are retained.

The Importance of Hiring an Expert

Expertise and Experience: Professional portfolio managers bring a wealth of knowledge and experience to the table. They are well-versed in market trends, economic indicators, and financial analysis. Their expertise enables them to make informed decisions that can significantly impact portfolio performance.

Strategic Insights: Financial markets are influenced by a myriad of factors, from geopolitical events to monetary policies. An expert portfolio manager provides strategic insights and anticipates market movements, helping to navigate uncertainties and capitalize on emerging opportunities.

Time and Effort Savings: Managing investments requires continuous research, monitoring, and decision-making. By hiring a professional, you save valuable time and effort that can be better spent on other pursuits. The peace of mind knowing your investments are in capable hands is invaluable.

Behavioral Discipline: Emotional reactions to market volatility can lead to impulsive decisions that harm investment performance. A professional portfolio manager brings discipline and objectivity to the investment process, helping to avoid common pitfalls like panic selling or chasing performance.

Comprehensive Financial Planning: Portfolio management is just one aspect of a broader financial plan. Experts often integrate portfolio strategies with other financial planning components such as retirement planning, estate planning, and insurance. This holistic approach ensures all aspects of your financial well-being are addressed.

Conclusion

Top Portfolio Management Services(PMS) in India offer a robust framework for growing your wealth through strategic investments. The complexity of financial markets and the need for continuous oversight make it essential to engage an expert for this task. Professional portfolio managers provide the expertise, discipline, and strategic insights necessary to navigate the investment landscape successfully. By leveraging their skills and knowledge, you can achieve your financial goals and secure a prosperous future.

I just finished with one of my favorite guilty pleasures.  I listen to a weekly podcast done by a couple of guys that started a new site/service for programmers called stackoverflow.  Since I am not a programmer, I feel a little bit like a voyeur listening to their podcasts but they are really smart and they talk about the human aspects of programming that are easily relatable.

I stumbled upon a blog called Joel on Software a couple of years ago and have been a fan and a reader ever since.  So, when the writer, Joel Spolsky, partnered up with Jeff Atwood (codinghorror.com) for this new site, I was curious and when I started listening to their weekly podcasts (they’ve done 32 as of this writing) I was hooked.

This week, their podcast included a topic that I wanted to talk about and relate to my experience in writing my “blog”.  I encourage you to follow the link above for stackoverflow and listen to the latest podcast (at least starting at about 34:45 and ending at about 55:15) the discussion is very insightful.

The topic I want to write about is how to stay positive after receiving negative feedback.  Actually, I have received both good and bad feedback for my site, I try to give them equal consideration.  I received one comment that told me my site was poo.  My initial reaction to that comment was that the person was just mean because clearly, my site is not poo to me.  But then I tried to be more open to what that person might be trying to tell me.  Perhaps that person was looking for a quick answer to a question and was frustrated because it is likely that there are no quick answers here.   In that sense, I failed the frustrated commenter.

The negative comment caused me to evaluate my writing more than any positive comment would.  I am still not a quick answer person but I do try to keep in mind that posts that are too wordy are boring and unhelpful.  My conclusion is that instead of allowing negative comments to hurt your feelings, step back and take another look and decide what there is to be learned from them.  Don’t dwell on the negative, instead, appreciate the opportunity to learn from it.  Applying this philosophy to the negative feedback you receive in life – including unsuccessful sales, job interviews or blogs can only help you to improve and become more successful.

To address the frustrated commenter, the only possible way I can give a quick answer is to have a clear question first.  I invite/encourage you to put your questions in the comment section.   It is likely that either I or other readers will be able to provide an answer that will be helpful for you.

<< How to Use Financials and Ratios

Businesses live or die on the value of their products and services.   Similarly, individuals and departments within businesses survive on the value of their internal products.  Accounting is no different.  Accounting provides both services and products that add value to an organization or service which comes as very efficient when someone looks to trade fx in the UK.

The most important thing in accounting is to understand accounting and your own accounting systems.  But, if you want to truly succeed, think beyond debits, credits and reconciliations and become an expert in your company’s industry. — When asked about Sallie Mae loan forgiveness, MyCreditCounselor.net state that Sallie Mae (and Navient for that matter) don’t offer traditional forgiveness programs, but there are alternatives that achieve a very similar outcome. Financial accounting knowledge transfers fairly seamlessly from one business to another but specific industry and management accounting knowledge may not and it is through that kind of knowledge that you can add value to your organization.

Research your industry, spend time with operations people, become familiar with what their processes are and the order in which they occur, including the type of loaning and how they work, take in count there are the payday loans which today payday loans really serve the purpose in helping and managing emergency financial situations.

Learn how they use their information systems, understand the logic behind both the information they track and the order in which that information is organized.  Become familiar with the way your systems interact, how they are dependent on each other and how they are independent of each other.   Find out from them what information they have and what information they wish they could have.  Ask them if they use reports from accounting, if so, do they find them to be reliable, timely and useful.  (Always make sure to have the appropriate permissions for internal research).

As an accountant you perform the financial functions that keep a business going but you are also the custodian of a wide variety of business information.  In addition to standard accounting data, you have access to information about lenders, suppliers, customers and operations.  As you increase your understanding of your company and industry you will increase your understanding of the information available to you.   Find ways to increase and improve the information you can make available to your company and you will have a real impact on its success and on the value you add to it.

© 2008-2010 Erin Lawlor

<< How to Use Financials and Ratios

**disclaimer: All information posted on this blog is from my own experience and training. The guidelines I present are general and in my experience, standard practice. I do not write with authority from any Accounting Standards Boards.

The internet is a vast, ever-evolving jungle. Businesses, both big and small, fight tooth and nail to be seen and heard amongst the digital foliage. This is where internet marketing comes in – your machete to carve a path through the online wilderness and attract potential customers. But within internet marketing lies a powerful tool called SEO, and navigating its intricacies can feel like deciphering ancient jungle symbols. So, why should you consider hiring an SEO expert instead of going it alone?

SEO: The Compass in Your Online Journey

Think of SEO (Search Engine Optimization) as your guide in the digital jungle. It’s the art and science of making your website a beacon that search engines like Google can easily recognize. By strategically using relevant keywords and optimizing your website’s structure, SEO increases your chances of appearing at the top of search results when people look for products or services related to yours. It’s like placing a giant, SEO-infused sign that screams, “Hey, I have exactly what you need!” right at the heart of the online marketplace.

The Importance of Ranking High: Why the Top Spot Matters

Imagine two shops in the jungle – one hidden deep within the undergrowth, the other prominently displayed near a well-trodden path. The one with higher visibility naturally attracts more customers. The same principle applies to SEO. Studies show that most users only click on the first few results displayed on a search engine results page (SERP). So, the higher you rank, the more clicks you get, translating into a dramatic increase in website traffic – basically, more potential customers stumbling upon your virtual shopfront.

The Allure of DIY SEO: Can You Go It Alone?

The internet is full of resources on SEO, and the allure of doing it yourself is undeniable. However, SEO is a complex beast, constantly evolving alongside search engine algorithms and is better to hire Search marketing Calgary. Here’s where the expertise of an SEO professional becomes invaluable:

Decoding the Algorithm: SEO specialists possess a deep understanding of how search engines rank websites. They stay updated on the latest trends and best practices, ensuring your website is optimized for maximum visibility. It’s like having your own personal jungle guide who knows all the secret pathways to reach the top.
Technical Prowess: SEO involves some serious technical mumbo jumbo about website structure and code optimization. SEO experts have the expertise to handle these complexities, freeing you up to focus on running your business. You wouldn’t want to navigate a jungle without a map and compass, would you?
Keyword Mastery: Identifying the right keywords – the search terms people use – is crucial for attracting the right kind of traffic. SEO experts conduct in-depth keyword research, ensuring your website speaks the language your ideal clients understand. It’s like learning the secret language of the jungle animals so they know you have the solutions they need.

The ROI of an SEO Expert: Growth Beyond the Jungle

Hiring an SEO expert isn’t just an expense, it’s an investment in the future of your business. Here’s how a well-executed SEO strategy can help you flourish:

Increased Brand Awareness: By appearing at the top of search results, your brand gains valuable exposure, making it more recognizable to potential customers. It’s like having your name whispered through the jungle, piquing everyone’s curiosity.
Attract Qualified Leads: SEO helps you target the right audience. People actively searching for solutions you offer are more likely to convert into paying clients. It’s like attracting potential customers who are already looking for what you sell, not just random jungle explorers.
Boost Credibility and Trust: A high ranking on search engines signifies authority and expertise in your field. This trust factor encourages potential customers to choose you over competitors. It’s like having a glowing reputation in the jungle marketplace, making you the trusted provider.
Sustainable Growth: SEO is an investment that keeps on giving. By attracting a steady stream of qualified leads, you can achieve sustainable business growth over time. It’s like building a permanent, thriving camp in the heart of the online jungle.

Embrace the SEO Revolution: Partner for Success

Don’t get lost in the ever-changing landscape of internet marketing. By partnering with an SEO expert, you gain a valuable guide who can navigate the complexities of search engine algorithms and optimize your website for maximum visibility. With an SEO expert by your side, you can transform your online presence from a hidden clearing to a thriving marketplace, attracting a steady stream of customers and propelling your business to new heights. So, ditch the DIY approach and embrace the SEO revolution. The online jungle awaits!

This post is a quick overview of subjects covered in more detail in other posts. I usually like to see a quick version so I am trying to present that option to others as well.

The Double Entry Accounting System collects, organizes, summarizes and reports on Financial Transaction data.

Financial Transactions: Exchanges of things of value.

There are three basic questions that must be answered for each financial transaction, they are:

• Question 1. How much money changed hands? What is the value of this exchange?
• Question 2: How was the money used?  What was either gained or paid for by this exchange?
• Question 3: Where did the money come from? What is the source of funds in this exchange?

Example:

• Answer 1: 3,000.00
• Answer 2: Rent
• Answer 3: Checking Account

The answers for each of the financial transaction questions are recorded in Journals digital wallets vs credit cards.   Journals have a grid format with a varying number of columns but to start, for professional accountant, we’ll use three columns. If you think this is too much for you to do on your own, then consider doing cloud accounting to make organizing your financials much easier.

See which clouds can be connected to here to have the connectivity that you can trust.

The descriptions that answer questions 2 and 3 are always entered on separate lines to the left of the two numeric columns.

The amount associated with question 2 is entered on the same line as its description and it is always answered in the left (debit) numeric column. The amount associated with question 3 is entered on the same line as its description and it is always answered in the right (credit) numeric column.

General Journal Example:

To ensure that both sides of the transactions are recorded, Total Debits must always equal Total Credits.

To keep the Chart of Accounts manageable and meaningful, it is important to strike a balance between having a long specific list and a short general list.  To accomplish this objective, the Chart of Accounts should have descriptions for types of things, and not for specific things.  You want the high volume accounts to be specific enough to be useful but not too specific because the fewer accounts you have the better overall picture you can have. Find Payroll Outsourcing at B Accounting

Chart of Accounts Organization: The Chart of Accounts is organized using three different methods.

• First:  Accounting Types
• Second:  Order of Liquidity – the ease of converting to cash
• Third: Account Numbers

The listing below shows the Chart of Accounts organization along with sample Account Number Ranges.

• Assets: 1000’s
  • Current Assets 1000 – 1499
  • Fixed Assets 1500 -1999
• Liabilities: 2000’s
  • Current Liabilities 2000 – 2499
  • Long Term Liabilities 2500 – 2999
• Equity: 3000’s
• Revenue: 4000’s
• Costs of Goods Sold: 5000’s
• I leave the 6000’s open to allow for a Cost of Goods Sold Subtype
• Expenses: 7000’s
• Other Revenue: 8000’s
• Other Expenses: 9000’s

Journals and Ledgers:

There are two types of Ledgers and Journals in the system, General and Subsidiary.   If you recall from above, I said that Accounts should only be created in the Chart of Accounts/General Ledger to describe types of things not individual things themselves. Well, in some cases especially in the case of cash substitutes like Accounts Payable and Accounts Receivable more detail is required. So, to maintain the summary nature of the Chart of Accounts/General Ledger and to provide more detail, a Subsidiary System of Journals and Ledgers was developed, while also using other systems as a Certification Tracking System to track the employees and their improvement in a company, while also giving them better chances to learn their own progress.

General Ledger: The General Ledger is the combination of the Chart of Accounts, Account Balances and Accounting Periods.  The General Ledger maintains the summary balances of ALL financial transactions.

The General Ledger adds the essential organizational element of Time (Accounting Periods) to the Grain Accounting System, so in addition to the original three organizational methods of the Chart of Accounts, the General Ledger is organized in four ways.

• 1. Accounting Type
• 2. Order of Liquidity
• 3. Account Number
• 4. Accounting Periods

Accounting Periods are generally date/time intervals of Months, Quarters and Years. The element of time is essential to accounting.  It provides the ability to report balances for any given accounting period as well as the ability to compare the results of different accounting periods against each other.

If the system is going to organize around accounting periods, then we need to add dates to the data we gather with transactions.  There can be a variety of dates that are relevant to a transaction, the transaction date, the invoice date, the due date, the expiration date etc. but for purposes of this post, the date we’ll focus on is the transaction date.

The Journal transaction grid introduced in the previous section needs to be expanded to 5 columns to accommodate the new data requirements of date and account number.

General Journal Example:

Subsidiary Journals and Ledgers: The two most common Subsidiary Systems are:

• Accounts Payable
• Accounts Receivable

All financial transactions that involve a general ledger account with an associated subsidiary ledger must be recorded in that subsidiary ledger first.

Subsidiary Journal:

Notice that the Subsidiary Journal uses more columns than the General Journal.  It uses the extra columns to track data that is specific to the Subsidiary Ledger as well as to the General Ledger.

General Journal:

The system requires that all financial transactions have an entry in the General Journal as well as in the General Ledger.  So, once the entries are posted to the Subledger Journals, they are then summarized and posted to the General Journal.

Notice the new columns in this General Journal example, they are cross referencing entries to show where the transaction was originally recorded.  The Jrnl in this example says AP = Accounts Payable and the Ref (55) is the same as in the AP Journal example above.  The Ref is the transaction reference number and will increment for each transaction.

Ledger Examples:

Each financial transaction is recorded in the appropriate Journals and then summarized and posted to the Ledger Accounts.

The Subsidiary Ledger (Subledger) is like the General Ledger/Chart of Accounts in that it contains a list of Accounts specific to its purpose.  The Accounts Payable SubLedger contains a list of AP Accounts and their balances.

The Total Balance of each Subledger must equal the balance of its related General Ledger Account Balance.  All financial transactions are recorded in the General Journal and the General Ledger and only the transactions with a gl account that has a related Subledger are posted to a Subsidiary Journal and Ledger.

If the Subledger does not Balance with its related account on the General Ledger, it means that there may be entries in either the Subledger or the General Ledger that are not in the other.  They should each have matching entries and there should be no entries made to the General Ledger for an Account with a related Subledger that are not also made to the Subledger and vice verse, and using accounting services from the accounts payable services providers could be really helpful to help you automatize the accounting services of your company.

© 2008-2010 Erin Lawlor

Next: How to Use Financial Statements and Ratios >>

<< Accounting Journals and Ledgers

**disclaimer:  All information posted on this blog is from my own experience and training.  The guidelines I present are general and in my experience, standard practice.  I do not write with authority from any Accounting Standards Boards.

The process of gathering and storing Financial Transaction data in the Accounting System is accomplished through the use of both:

• Ledgers: which maintain Account Balances
• Journals: which maintain the line by line detail of each Transaction.

Ledgers:

I’m starting with Ledgers because we’ve gone through the basic organization of the Accounting System from Double Entry (debit/credit) Transaction Posting, to the Chart of Accounts and finally the General Ledger.  I’ll stay on the topic of the General Ledger first and then back up to the Journals where each transaction is originally posted.

In Accounting, there are two types of Ledgers, the General Ledger (Book of final entry) and Subsidiary (Sub) Ledgers. The Accounts for the General Ledger come from the Chart of Accounts. The Accounts for the Subledgers depend on the specific purpose of the Subledger.

If you remember in the “Chart of Accounts – Basics”, I said that Accounts should only be created to describe types of things not individual things themselves. Well, in some cases especially in the case of cash substitutes like Accounts Payable and Accounts Receivable more detail is required. So, to maintain the summary nature of the Chart of Accounts/General Ledger and to provide more detail, Subsidiary (Sub) Ledgers were developed.

Everything that is posted into Subledgers is also posted into the General Ledger and they act together to provide progressive levels of detail/summary.

The two most common Subledgers are:

• The Accounts Payable Subledger: which maintains a list of Vendors (or creditors) and their individual Account Balances.  Each individual Vendor represents a Subledger (Accounts Payable – Vendor) Account.
• The Accounts Receivable Subledger: which maintains a list of Customers and their individual Account Balances.   Each individual Customer represents a Subledger (Accounts Receivable – Customer) Account. Card payment providers offer reliable solutions for businesses to accept card payments from customers.

Each Subledger relates directly to a General Ledger Account that requires more detail than the General Ledger can offer.  These GL Accounts are often referred to as control accounts. The Balance of a Control Account should always be equal to the total of its related Subledger Account Balances. As you can see, the total of the Accounts Payable Subledger below equals the Balance of the related General Ledger Accounts Payable Account.

The listings above are Ledger Account summaries. Both the General Ledger and the Subledgers actually have a more detailed section for each Account. Those sections include summarized entries and balances along with references indicating which journals those entries originated in.

The tables below show an example of a Subledger Account and an example of the corresponding General Ledger Account.

Because there can be multiple Subledgers, there are also multiple Journals. The Jrnl field indicates which journal the entry came from. The AP’s in the jrnl field mean that those entries came from the Accounts Payable Journal and the CD entry came from the Cash Disbursements Journal which is the journal that maintains detail for Cash Outflows. The Jrnl and Ref field together give a cross reference that enable the user to access more detail about each entry. Learn how to start fundraising with https://norgesbriketten.no/dugnad-tjene-penger-klassetur/ best place for Norwegian voluntary and communal work.

Journals:

All financial transactions are recorded in Journals. The Journal maintains each individual transaction line by line. Just as there are two types of Ledgers, there are also two types of Journals: The General Journal and the Subsidiary Journals. Most entries will originate in Subsidiary Journals, however, if none of the GL Accounts affected by an entry have a related subsidiary journal, the entry will originate in the General Journal.

Everything that is posted into Subsidiary Journals is also posted into the General Journal. Journals act together with Ledgers to provide progressive levels of detail/summary.

Subsidiary Journal:

The format for Transactions in the the Subledger Journals is similar to the format for the General Journal that I’ve used in previous posts except they require at least three more columns in the grid. One for the Subledger Account, one for an Invoice Number and one for a Reference Number. This entry in the Accounts Payable Journal shows the detail for the both of the Ledger entries above that indicate Jrnl = AP and Ref = 55.

This entry records A Credit Card Statement into Accounts Payable, which includes the purchase of a Chair and a Desk along with Credit Card charges.

Note that the Vendor Account, the Invoice #, Transaction Date and Ref# are not re-entered for each line. It is assumed that those three items remain the same for each of their balancing entries.

** Important: Individual transactions for each Subledger Account must have a unique identifying number, in this case, its an Invoice Number. That number combined with the Subledger Account creates a unique pair that prevents duplicate payments and provide a way for each party to reference the transaction for payments or if disputes or questions arise.

General Journal:

Since the system requires that all financial transactions have an entry in the General Ledger, they must also have an entry in the General Journal. This requires some duplication of effort but it is necessary. So, once the entries are posted to the Subledger Journals, they are then summarized and posted to the General Journal after which the Balances in the General Ledger are updated.

The Path of entries for Financial Entries:

Transactions containing a GL Account that is related to a subsidiary journal start with the Subsidiary Journal otherwise they start with the General Journal, Click here for the Text to Give | Mobile Fundraising Service | Aplos the best nonprofit service.

Subsidiary Journal –> Post to Subsidiary Ledger by its Account –> Post to General Journal —-> Summarize and post to General Ledger by GL Account.

© 2008 -2010 Erin Lawlor

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**disclaimer: All information posted on this blog is from my own experience and training. The guidelines I present are general and in my experience, standard practice. I do not write with authority from any Accounting Standards Boards.