Chapter 2

Creating a Framework

In This Chapter

arrow.png Finding a spot for every single transaction

arrow.png Gathering materials with account classifications

arrow.png Building foundations for your Profit & Loss report

arrow.png Analysing income with a bird’s-eye view

arrow.png Making everything just right with Balance Sheet accounts

arrow.png The finished home — your first chart of accounts

If bookkeeping were just about doing your tax, the way you categorise information would be pretty simple. Income would be just one total, and most expenses would be lumped together, with only stuff like bank interest, rent and wages separated on reports.

However, your job as a bookkeeper is about much more than tax. You want to generate reports that explain exactly where your income comes from, which activities generate the most moolah, what the expenses are, how actual results compare against budgets, and lots more.

The way you categorise business transactions ...

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