Do bank statements alone reflect accurate accrual accounting?
-
Bank statements are just a record of cash coming in and out. They don’t really show when you actually earned money or if you owe anything. A lot of cash accountants (CAs) stick to statements because it's easy, but good bookkeeping means keeping track of your invoices, bills, and inventory.
Instead, you should ask your CA to keep “sales and purchase journals.” This way, you'll see your income and expenses as they happen, which gives you a much better view of your business than just looking at your bank balance.
Hello! It looks like you're interested in this conversation, but you don't have an account yet.
Getting fed up of having to scroll through the same posts each visit? When you register for an account, you'll always come back to exactly where you were before, and choose to be notified of new replies (either via email, or push notification). You'll also be able to save bookmarks and upvote posts to show your appreciation to other community members.
With your input, this post could be even better 💗
Register Login