5 Tips on Managing the Turnover of Debit and Credit Transactions in Business
Among most business people, especially those who are still in the middle to lower scales such as SMEs or MSMEs, they often experience difficulties in checking or controlling their debit and credit transactions. Failure to control and check debit and credit transactions will result in losses that cannot be anticipated beforehand. For this reason, in order to overcome this, we will discuss the following important tips on how to take steps in controlling incoming (debit) and outgoing (credit) transactions in the internal operations of the business that you are running.
Record All Sales & Purchase Transactions
If you have made a sale and purchase transaction, then be sure to gather all the evidence of these transactions. Try not to get any evidence of transaction loss, because it will affect the nominal amount of the transaction that you will record. If all have been collected, then you can already begin the process of grouping transactions, whichever is included in a debit or credit transaction.
Keep a Transaction Journal
If you have classified which ones are included in debit and credit transactions, the next step is to keep a transaction journal. It is recommended that every time you make a transaction, you keep a journal entry so you don’t forget it, but if you still don’t have time to record it, then you can keep a journal every weekend.
Separate Journal Content and Input into Ledgers (posts)
Unlike the journal form, in the ledger, there will be groupings based on the type of transaction you are doing. For example, a cash account will contain all transactions (debit/credit) directly related to cash, then accounts receivable will contain transactions relating to receivables. Each different type of transaction will have its own classification table. In making a post or transfer from a journal to a ledger, try to be more careful, so that no transaction is left behind, which in turn will cause the balance value to be wrong or reduced.
Pay Attention to the Type of Balance Sheet Report
The balance sheet is one part of the financial statements that specifically reports on the description and value of assets, liabilities, and capital of the shareholders for a certain period. A balance sheet report is intended to find out whether the value of debits and credits is balanced or not, if the journal and ledger are correct, then the numbers that will appear on the debit and credit side should also be balanced, if not, then chances are is there a transaction that forgot to be recorded or there was a wrong transaction in the recording of the account.
Preparing financial statements
After completing all the steps above, try to start recording all transactions, keep a journal, move it (posting) into the ledger, and pay attention to the balance sheet, then you already know the velocity of debit and credit transactions in your business.
In the next part as a comprehensive conclusion, you must make a financial statement. This report serves to see all the activities of the transactions that you have done. This is also useful so that you can see if your business has a profit (profit) or vice versa. From here you will also be able to think about what important things to do in the future.
Bookkeeping (recording) and reporting are very important for the running of a business because if you cannot control the debit and credit value of the business that you are running, it will have fatal consequences that can cause losses.
To simplify the recording and grouping, it is time for you to use online accounting software such as Journals. There are several advantages that you can get by using a Journal.
- The Snap Journal feature in the Journal financial application can help you store all transaction evidence quickly without having to fear to lose the transaction proof because everything has been captured and stored safely.
- Journal has a mobile application that makes it easy for you to check every financial statement anytime and anywhere just from the screen of your smartphone.
- Every financial transaction that you record will immediately be seen graph changes in its financial position making it easier for you to make an analysis and make decisions.