How to Make a Simple Accounting System

 A simple accounting system is the system which can easily use by all the business persons whether he or she know only basic accounting. With this, they can manage their money better way. They can also track their incomes, expenses, assets and liabilities. With this, they can make better budget for next month.


So, you should understand simple accounting system. Following are its steps

1. Track Your Paid Bills - Account Payable Process

In your email, every week, you got lots of bills whose payment you have done. These payments will be of your bought goods and services. So, mark it when you have obtained each bill and add it in your accounting software. With this, you can track all your paid bills through your expenses account.

2. Track Paid Amount for Your Sales - Account Receivable Process

Just check your bank account. All the account receivables whose amount, you have received, should be recorded in your accounting software. Before this, you have to record credit sale in your accounting software. Accounting software will adjust your total sale amount and amount received from your debtors.


3. Track Your Cash Flow 

If your accounting software is not making cash flow statement, you need to make it in your spreadsheet. You can start it with the opening balance of cash in your hand. Now, you have to show two column. Inflow of cash and outflow of cash. There should be three categories of inflow and outflow of cash. One is cash flow from operating activities. Second cash flow from investing activities and third cash flow from financing activities.
Thank You