The Five Most Important Numbers in Your Books

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When you are a bookkeeper, you will know that there are some numbers that you need to know about, and numbers that are essential to have in your books. Without these numbers, any bookkeeper might be in some serious trouble and you might not get your books to balance. These are the five most important numbers in your books that you need to have.

Liabilities

Liabilities are actually just the debt that the business should pay. The most important numbers that you need to have in the books of a bookkeeper is the liabilities. And, not only should these numbers be in the book, but also, it should be correctly.

It is so easy to make a mistake with the liabilities, and this can make you struggle for hours to get your books to balance out.

Expenses

The expensesare the everyday expenses that the business has. This is the purchasing of paper, the utility bills, and the rent of the business. This is expenses that the business can’t go without and where you need to make sure that the exact amount is getting paid.

There is a difference between the liability and the expenses. People are getting confused between these two and you need to make sure that you as a bookkeeper are going to know the difference.

Assets

Assets are the stuff that the business owns. This is things like the building, the furniture the machinery and the furniture at the business; everything that the business owns.

This is also essential to make sure that you have the right amounts of these assets and that you are including all the assets. Many bookkeepers in Melbourne forget to calculate the furniture and the equipment and machinery as well.

Revenue

The revenue is just a fancy word for the money that the business is actually making; the money that is getting into the business by purchases by clients. This normally will include all the income into the business.

The revenue is going to show how successful your business is and how much money it is making on a weekly and monthly basis. Without the revenue in your books, there is no way of balancing the books. This is normally also the easiest thing to calculate for bookkeepers in Melbourne.

Owner’s capital

Many bookkeepers, especially the new bookkeepers, are struggling to understand what the owner’s capital is. Most are making the mistake to think that this same as the revenue. However, this isn’t the case.

The owner’s capital is actually the net financial interest in the business. The money that is over, after everything is deducted.

There are many numbers that should be in the books of a business. And, this is because of these numbers that you need to hire a qualified and experienced bookkeeper. It is essential to know these numbers and to know how to insert it correctly into the businesses books. Then, you will know that the business has a great bookkeeper and that the books will balance out each and every month.

Check out http://www.bookkeeperco.com.au/ for more informations.