General Ledger in Accounting Software
There are two main parts to your business's financial statement -
The accounting software will produce a Profit and Loss, which shows your day to day income reflected against your expenses and therefore shows what your profit, or loss, is.
The accounting software will also produce a Balance Sheet, which shows your business assets against liabilities and the accumulated earnings of your business over the years.
Lets first look at how these reports are arrived at -
You must first understand, or accept the first main principle of double entry bookkeeping before we start and that is -
For every entry made there must be an equal and opposite entry made somewhere else and when you hav...
[ Read Article ]
