Keep your books in balance – When you are dealing with the accounting books, you must stay in balance. In the accounting world, these would all be recorded as a credit.Ĥ. Remember the acronym GIRLS for credits – GIRLS stands for Gains, Income, Revenues, Liabilities, and Stockholders’ Equity. Each one of these different things would be recorded as a debt when dealing with accounting.ģ. Remember the acronym DEAL for debits – DEAL stands for Dividends, Expenses, Assets, and Losses. Keeping these two straight is the first step to being successful when managing your business finances and help you determine your cash flow.Ģ. A credit is a revenue or money that is earned by the business. Any expenses are added to your debit card. An easy way to remember this is to remember your debit card. Knowing the difference between a debit and a credit – A debt is an expense or charge of the business. There are several things to remember to help you correctly manage your credits and debits.ġ. Being successful in managing your books may make all the difference in whether or not your business will be successful. Any small business needs to have a good understanding of both debits and credits in order to successfully manage their finances.
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