Bookkeeping
Setting up a chart of accounts that still makes sense in year three
Messy books are rarely a data-entry problem. They are a structure problem, and the structure is decided in the first…
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Bookkeeping
Books that reconcile every month: a sane chart of accounts, matched bank lines and a receivables list you can chase.
Set the chart of accounts up once
Most messy books are not a data-entry problem; they are a structure problem. Group revenue by how the business actually sells, keep direct costs separate from overheads, and give every statutory liability — GST, TDS, EPF, ESI — its own ledger so the balance sheet shows what you still owe.
The monthly close #
Reconcile every bank and card account to the statement. Match GST output to the returns filed. Clear the suspense account instead of letting it grow. Post depreciation and prepaid expenses monthly rather than in one March entry. Review debtors and creditors ageing, and write off what will never be collected.
Cash businesses #
Where a meaningful share of takings is in cash, a daily cash sheet signed by whoever holds the float is worth more than any software. Books that do not reconcile to physical cash are books nobody can rely on.
What you will need
- Bank and credit card statements for the month
- Sales invoices and receipts issued
- Purchase and expense bills
- Petty cash vouchers
- GST returns filed for the period
- Payroll summary and statutory payment challans
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Bookkeeping