Keeping up with your financials for a small business can be a bit overwhelming, as things can become unorganized very quickly. You probably have found yourself spending a lot of time trying to sort and file your transactions correctly. If you have been experiencing growth in your business and you know it is time to keep a more accurate ledger of your financials, then Freshbooks has a wonderful time-saving method that can help relieve your frustration called double-entry accounting.
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Double-entry accounting is a standard method of accounting where you are satisfying the equation, Assets = Liability + Equity, that you have to reconcile properly. This method teaches you that every financial transaction has an equal and opposite effect, debit and credit, which means you will have two entries. You want an easy to understand accounting software to help walk you through the mathematical pains you may be experiencing.
In keeping up with your business’s growth and overall financial health, the double entry method is the best way to provide that total picture. One of the best benefits of all will be when tax time is here, you will have your books in order. You will be able to easily present this to your accountant and your accountant will love you for it.
Freshbooks double entry accounting includes these 8 features below:
- Cost of Goods Sold
- Other Income
- General Ledger
- Trial Balance
- Charts of Accounts
- Accountant Access
- Bank Reconciliation
- Balance Sheets
This is a wonderful tool to use for the business owner that has a few employees, and more financial complexities to keep up with. I would not advise this for a one person ran business who isn’t bogged down with tracking down an array of transactions. Don’t fear, as Freshbooks is great for every level of business that you are in, even for startups.
Freshbooks has designed this double entry accounting method to be simple to use and has a ton of easy to understand features that will overall help you to manage your cash flow, track expenses such as business loans and equipment purchase.