What is Bookkeeping? What are the Basic Bookkeeping Procedures? How is Bookkeeping Maintained? What are the Advantages of Working with Bookkeeping?
What is Bookkeeping? What are the Basic Bookkeeping Procedures? How is Bookkeeping Maintained? What are the Advantages of Working with Bookkeeping?
A business's income and expenses, in other words, its financial transactions, must be regularly and properly controlled and processed. Failure to do so can lead to a company's financial transactions becoming unmanageable.
Preliminary accounting is crucial for maintaining a company's financial flow. You can find detailed information about what preliminary accounting is, its basic operations, and the advantages of using it in our article.
What is Preliminary Accounting?
Preliminary accounting is the initial stage of recording, organizing, and tracking a business's daily financial transactions before official accounting records are processed. Preliminary accounting handles the creation of invoices, tracking collections and payments, controlling inventory, and managing current accounts regularly and accurately.
Accurate and proper accounting is crucial for general accounting. Once the preliminary accounting transactions are prepared, they are forwarded to general accounting for further processing. All invoices, reports, revenues, and expenses transferred to general accounting must be fully and transparently reported.
What are the Basic Procedures of Preliminary Accounting? How is Preliminary Accounting Maintained?
Preliminary accounting encompasses financial services up to the general accounting process. The basic functions of preliminary accounting are as follows:
-Creating invoices and delivery notes
-Check the customer and supplier debt-receivable status, i.e. current account monitoring
-Keeping records of goods sold or purchased, i.e. stock tracking
-recording of cash and bank movements
-Preparation of collection and payment plan
-Preparation of reports that need to be transferred to the general accounting
-Creating income and expense records
Preliminary accounting processes are kept in a separate section within the company. General accounting receives the necessary information and documents regarding the company's financial transactions from preliminary accounting. There are many different options for the transactions required during the preliminary accounting process.
Preliminary accounting, previously kept in ledgers, is now kept digitally. Especially for large, busy companies, keeping preliminary accounting in ledgers was not only time-consuming but also highly likely to contain incomplete information if detailed explanations weren't provided.
Keeping preliminary accounting in digital programs not only saves time but also keeps information more accurate and reliable. It also eliminates the risk of information being lost or forgotten.
To maintain digital accounting, you can create your own tables and diagrams using programs like Excel and Word . You can streamline your work by typing or coding items and notes that would otherwise have to be written by hand into this program. Calculation is quite practical for tables where you want to calculate. Instead of adding and subtracting each item individually, you can perform all calculations with a simple formula.
Using pre-accounting programs will also be advantageous. Pre-accounting software simplifies data entry and calculations. These software programs are also very useful for creating lists and reports. Many companies use pre-accounting programs.
Using accounting software not only increases the accuracy of financial data but also ensures its reliable archiving and listing. Some of the most commonly used accounting software programs include Logo , Paraşüt, Bizim Hesap, Bilsoft , and others, which are among the most popular accounting applications for businesses.
What are the advantages of working with pre-accounting?
Working with pre-accounting is crucial for controlling a company's financial flows. The advantages of working with pre-accounting are as follows:
It provides a real-time view of a company's financial performance. It provides immediate information such as profit, loss, inventory, payables, and receivables. It provides an instant financial statement.
Errors and missing information are detected and corrected immediately. This prevents incomplete or incorrect data from being passed to the general ledger. Your accountant will generate faster and more accurate statements.
It regularly monitors cash flow, including payments and collections. It eliminates potential negative situations and provides data for future payments and investments.
When you keep regular records, you avoid the complicated and stressful task of collecting missing documents at tax time.
Working with pre-accounting significantly simplifies your company's operations. It not only simplifies your work but also records your information completely and reliably.
