The Definitive Guide to Business Finance: What smart managers do with the numbers, Second Edition
by Richard Stutely
Balancing the books
It is time to discuss managing the numbers in a hands-on sense. The previous chapter began by stressing that you should arrange for all monetary transactions to pass through your bank account. This ensures that outlays and receipts are documented. It also provides a sort of double entry verification, in that you can check your records against the banks to ensure that all amounts are posted correctly by your company and by the bank. Let me begin by explaining how you reconcile these two sets of records. Then we will move on to consider managing petty cash, expenses claims, payments due from clients, and cash flow. Finally, I will introduce accruals accounting, which helps managers and entrepreneurs interpret the numbers which ...
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