11 Jun How to Track Company Credit Card Transactions?
Bookkeeping is an essential task for all businesses. If you miss this approach it will be so tedious to maintain tracking card transactions and accountability. Hence, this is paramount to every organization. Concerns related to excessive expenditures, partial record keeping to include recording losses from any indecisive cash disbursement should be properly traced, though. Reconcile credit cards vis-a-vis your bank accounts. Balance charges and/or cash advances then consider payments, credits or vice versa. These are basics in bookkeeping and tracking card transactions. Have a unique identifier for fixed assets. Always stay on top of your accounts receivables while setting aside funds to pay tax as well to keep all transactions organize.
Moreover, consider the following related tips:
Record transactions daily
Always maintain transaction record every day. It is going to be more tedious if you do all the stuff on a last-minute rush. Entrust the accounting to an electronic recording system for both invoices and receipts with lesser work and cost for you otherwise then hire professional firms to complete it. Record every relevant transaction details and link them to your Chart of Accounts.
Chart of Accounts system
This is a list of transaction categories such as assets, liabilities, expenses, equities, and income. A unique identifier for each category is dubbed Account Code, or simply, the Ledger. It is best to have a chart of accounts as a guide to categorize transactions. Basically, this is how to get started with your bookkeeping record. The rest is history.
Debit and Credit
Every transaction incurs debit and credit. A financial period always culminates with a total debit that equals the total credit. A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. A credit either increases a liability or equity account or decreases an asset or expense account. Understand how both individually and relatively work in an accounting system.
Personal vs. business transactions
It is best for a business organization to rather pay yourself a salary even if you are the only one managing the venture. Record every payment made on behalf of your investment. You may transfer funds to your personal account on a weekly basis. Always separate your personal and business transactions. Keep your business and personal bank accounts monitored and updated.
Use card or check as mode of payment
Getting receipts on every transaction is good but keeping all these receipts intact is tough. It is best to use the card or check as mode of payment to keep evidence of every transaction. On your credit card statements, all transactions would appear so it will be easier for you to track all of those fees. Check payments will also reflect what transactions were made. Always keep a record of all those disbursements to audit and trace all important expenses.
Bookkeeping is tedious a task but it is necessary to keep your business doing right. A good accounting record is imperative for your business to grow. It encourages trust and confidence among corporate personalities. Any issues and concerns regarding your investments will be figured out and addressed promptly before it worsens amid effective bookkeeping records