A good set of accounts is important to monitor the financial health a company in a simple manner. An accounting ledger is a simple document that records the cash flow in any business. It enables the company to keep track of the money coming in as well as the money going out of the company.
Careful recording of every cent in cash or check is required in the form of an input or output. Any revenue going into the company is called a ‘Credit’ while any fund going out is termed ‘Debit’. It is preferred that the Credit exceeds the Debit for the continuity of the company.
An accounting ledger is best employed on a daily basis where the transactions are high. A monthly or yearly report can be generated for an overview of the credits and debits of the company.
An accounting ledger template can be manipulated manually or electronically. The former is more tedious as the calculation of balances must be correct and accurate while the latter computes the balances automatically and correctly, as long as the Credit and Debit columns are correctly entered.
The accounts personnel are responsible for keeping the accounting ledger entries correct and updated. The corresponding documents must be carefully stored for references.
The accounting ledger template may contain:
* Company Name
* Check Number
* Tick column for confirmation
* Credit Column
* Debit Column
An accounting ledger helps the company make better business decisions.
Consider the attached sample template for your convenience.