Keeping a good set of accounts is crucial to the welfare of any company as it showcases the health of the business. An accounts ledger is a simple but important document which records the cash flow in a business. This operation allows the company to track its revenue and expenses to identify the status of the company.
Every cent in cash or check is recorded as an input or output to the business. An inflow of revenue is called a ‘Credit’ while an outflow of funds is termed ‘Debit’. There must be a positive outcome from the Credit and Debit columns for the company to survive or progress in the business environment.
An accounts ledger is best employed on a daily basis, especially 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 accounts ledger template can be in manual or electronic form. It is more tedious manually as the computation of balances must be accurate while an electronic version allows automatic computation of balances after the credit or debit values are entered.
An accounts ledger is usually handled by the accounts personnel in the Accounts department of any organization to keep track of the amount of cash flow in the company every day or month.
The accounts ledger template may contain:
* Company Name
* Check Number
* Check Amount
* Credit Column
* Debit Column
Consider the attached sample template for your convenience.