5 Simple Ways to Make Accurate Financial Bookkeeping Reports

Financial accounting reports must be prepared systematically and accurately. This report will be used as a reference for the company to determine what steps the company should take next. Given its vital importance, it is not surprising that this report should be so accurate. This report is the heart of the company. You as a businessman must be able to read these financial statements. The report will later describe how the company is doing and also assess the company's performance in a month or even a year.

Many consider the preparation of this financial report to be very complicated, so complicated it takes days so that a lot of time is used just to focus on taking care of the financial accounting reports.

Types of Financial Statements
Before you know how to make financial accounting reports, it's better if you know what reports to make. In accounting, there are four types of reports that must be made, the first is profit and loss. This report should list the transactions for each individual and the total money your business has earned.

The next report is a balance sheet where with this report your company can know how your company's financial position is and usually in a period of one year. In addition, there is also a report on changes in capital which in this report will present any changes in owner's equity in an entity within a certain period.

The last report is cash flow. By using this report, your company will know how the company's cash flow, the amount of cash coming in and also the amount of cash out in a certain period. Preparation of this cash flow report must be detailed, accurate, and transparent because this report is important for business finances.

How to Make Financial Statements
In order for the results to be accurate, the method for making financial accounting reports must also be precise and with the right steps. Check out how to make the following proper financial statements:

Collect and record transactions
This transaction is a general activity that is often carried out by companies whether it is for purchase, sale, exchange, or rental. Proof of transaction is important and this evidence must not be lost. This evidence will later be used as the basis for making this report in the form of notes, receipts, invoices, and others.

Journalize to ledger
General ledger is a breakdown of each existing account and it is not difficult to do this where only need to move transactions from the journal to the appropriate account in detail.

Trial balance
Trial balance contains a list of large accounts with debit or credit balances. The list of accounts in this general ledger is grouped into groups of liabilities or assets. This balance is used to check the balance between debit and credit in all accounts.

Make an adjusting entry
Some transactions may go unrecorded or they occur late in the financial reporting stage. All data is collected to make adjusting entries.

Work sheet and financial reports
This work sheet or worksheet starts from a trial balance and must be adjusted to the data in the adjusting journal. After that the balance will be adjusted and shown in the trial balance column. The last, then the company can make financial reports.

The many processes that must be passed in the preparation of this financial report make human errors possible, especially when recording manually. Just one number makes the resulting report inaccurate. You can speed up the accounting process and make the results accurate with ERP-based accounting software. You can use SOLTIUS services to help implement an ERP system in your company. We are a consulting company and also the best and most trusted IT provider in Indonesia and a partner company in implementing ERP in Indonesia. Many companies have helped and are able to make financial accounting reports more quickly and accurately, contact us for further consultation.