In accounting science, there are two methods or systems for recording financial statements that can be applied to your business, namely cash-based recording methods and accrual-based recording methods. Cash system is a method of recording where transactions are recorded that are related to the entry and exit of the company’s cash. The cash system is more widely used by business actors, especially middle and lower businesses because of its easy application. Meanwhile, the accrual system is a method that records all transactions that occur not only related to cash but also debt, accounts receivable. Accrual systems can provide a more accurate picture. So you also should use an accrual system so that simple financial statements can be used to the fullest. Meanwhile, if you also need help in bookkeeping, perhaps you need to hire trusted bookkeeping services near your area.
Record all expenses & income
Tips so that a simple financial report can be used optimally, namely recording all expenses and income that are available. Some business actors such as SMEs do not record transactions that occur. So the results of their financial statements do not reflect the actual condition of the company. Common reasons are because they are lazy, complicated, or waiting until the transaction is many, and so on. Even though from the beginning it has been accustomed to immediately taking notes, everything will be easy. If you want to make it easier for you to record all expenses and income, you can use the help of accounting software.
Give Detailed Explanations
The next tip for making a simple financial report is not to forget to give a detailed explanation. So that the financial statements are clearer. So when you do a re-examination, you don’t need to rethink. In addition, by giving a detailed explanation this will help you more carefully to make financial records.
Comply with deadlines
Late financial statements will have no value. Therefore obey the deadline in making financial statements. If you have made it on time, then commit to consistently making it periodically. For example on a monthly, tri-semester, annual, or other agreement. By adhering to the deadline, you also indirectly avoid mistakes and can reach the target as specified. True financial statements will be very valuable if everything is done correctly.