94: Check Your Bookkeeping Accuracy With This Report Whether You Are Starting A Business


94: Check Your Bookkeeping Accuracy With This Report Whether You Are Starting A Business, Self-Employed, A Solopreneur, Entrepreneur, Mompreneur, Business Owner, Side Hustler, Freelancer, Bookkeeper, Virtual Assistant, Or VA


When you are utilizing a computerized software system to do your bookkeeping, it will save you time if you are taking advantage of all the bells and whistles it has to offer, but how do you know that everything is getting classified in the proper accounts? One of the tradeoffs you have when you are using functions such as bank feeds and automatic data entry is that you need to make sure you are reviewing all of your transactions for accuracy. In today’s podcast episode, I cover one of the most important reports you can review to ensure all the transactions you have going into your financial statements are categorized in the right accounts. This is a simple report to generate, and it won’t take you too much time to review, especially if you are able to work on your bookkeeping on a monthly basis so that you have accurate financial statements to review. You know I always recommend you keep up with your bookkeeping and reconcile your accounts on at least a monthly basis. When you do this, you are able to make smart business decisions in real-time for your business rather than having this information months after the tax year has ended, and you no longer have the ability to be proactive about your business decisions. Whether you are a self-employed individual, a solopreneur, entrepreneur, mompreneur, freelancer, small business owner, a remote, virtual, online, or in-house bookkeeper, or a virtual assistant or VA, having the knowledge of this easy-to-generate report and understanding how simple it is to spot errors will give you even more confidence that you are doing your bookkeeping accurately. To celebrate my upcoming 100th podcast episode, I am giving away a four-week business strategy and coaching package to one of my lucky podcast listeners. If you’d like to be entered in the drawing, you need to sign up for one of my free consultation sessions by September 3rd, 2022. You can go to https://www.FinancialAdventure.com/contact-us to schedule your session today. These tips are essential whether you are using a computerized software system like QuickBooks, Xero, Wave, or FreshBooks for your business finances; or doing your bookkeeping manually with an Excel spreadsheet or even a Google Document…


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Show Notes:


When you are utilizing a computerized software system to do your bookkeeping, it will save you time if you are taking advantage of all the bells and whistles it has to offer, but how do you know that everything is getting classified in the proper accounts? One of the tradeoffs you have when you are using functions such as bank feeds and automatic data entry is that you need to make sure you are reviewing all of your transactions for accuracy. In today’s podcast episode, I cover one of the most important reports you can review to ensure all the transactions you have going into your financial statements are categorized in the right accounts. This is a simple report to generate, and it won’t take you too much time to review, especially if you are able to work on your bookkeeping on a monthly basis so that you have accurate financial statements to review. You know I always recommend you keep up with your bookkeeping and reconcile your accounts on at least a monthly basis. When you do this, you are able to make smart business decisions in real-time for your business rather than having this information months after the tax year has ended, and you no longer have the ability to be proactive about your business decisions. Whether you are a self-employed individual, a solopreneur, entrepreneur, mompreneur, freelancer, small business owner, a remote, virtual, online, or in-house bookkeeper, or a virtual assistant or VA, having the knowledge of this easy-to-generate report and understanding how simple it is to spot errors will give you even more confidence that you are doing your bookkeeping accurately. To celebrate my upcoming 100th podcast episode, I am giving away a four-week business strategy and coaching package to one of my lucky podcast listeners.If you’d like to be entered in the drawing, you need to sign up for one of my free consultation sessions by September 3rd, 2022.You can go to https://www.FinancialAdventure.com/contact-us to schedule your session today. These tips are essential whether you are using a computerized software system like QuickBooks, Xero, Wave, or FreshBooks for your business finances; or doing your bookkeeping manually with an Excel spreadsheet or even a Google Document…


Welcome Back…When I am working with clients who are doing their own bookkeeping, I often hear that they feel like they are doing everything correctly…they enter all their transactions, they reconcile their accounts, but they still want the satisfaction of knowing that everything is accounted for correctly. This is when I introduce them to the General Ledger Detail Report. This report gives you all the details for every transaction that is recorded in your bookkeeping system and which account it is listed under.


You are probably aware of your financial statements, and I am hoping that you are reviewing your Balance Sheet and your Income Statement or Profit And Loss Report on a consistent basis, but this General Ledger Detail Report takes each and every account you have listed on these two reports and lists out each transaction that is recorded in each of the accounts within the dates you are reviewing the report. The report will start with your Assets, Liabilities, and Owner’s Equity accounts and then continue to report the details of your Revenue and Expense accounts. This report will also help you get even more familiar with your chart of accounts. Your chart of accounts is really the backbone of your accounting and bookkeeping system. You should understand what each of the accounts are for in your chart of accounts, and if you have accounts you don’t need, I recommend you delete or inactivate them. If you have accounts that you are using but are unsure what the account is for, I recommend you ask your tax preparer, CPA, or bookkeeper, or you can even contact me, and I can help you as well.


Whenever you book a transaction in your bookkeeping software, there is always a debit and a credit entry that keeps your books in balance. Most of these entries take place behind the scenes and happen automatically when you record a transaction such as creating an invoice or entering a check or bill payment. When you take a look at your general ledger detail report, you will select the dates in which you want all the information to be reflected in that report. For example, you could select the dates for the General Ledger Detail Report that reflect the last month or period that you are reconciling your accounts for. Your General Ledger Detail Report will list the date, type of transaction, the name, amount, and even the memo if you have one entered for your transactions. You will be able to see if there is a beginning balance or a zero beginning balance depending on your account’s history. You will be able to see all the transactions for the period you are generating the report for and then an ending balance for each account. This allows you not only to see what all the transactions are for that period, but you can also quickly view what the balance is as well.


When you are reviewing your General Ledger Detail Report, take a look at all the transactions for each account. You want to look for accuracy and be able to spot any unusual transactions, errors, or even fraudulent transactions. You should be familiar with which transactions should be in each category. For example, if you see your favorite restaurant’s latest expense under your rent expense, you know this is incorrect, and you can make the necessary changes to put it into the correct account. In most bookkeeping software solutions, you can easily double-click on the entry if you are viewing it on your computer, and it will take you directly to the original transaction so that you can correct your transaction efficiently. You might also be looking into a specific account thinking that you have an error, but you may find that the information is correct, and it is good to know why there is such a significant change. Take, for example, you are looking over your telephone expenses, and you notice the costs have increased significantly over the prior month. Just by looking into the details, you may find that there was a new phone purchase which is increasing the total telephone expense amount considerably. In this case, everything is recorded accurately, and there are no corrections that need to be made, but you are now aware of the increased amount. By taking this bird’s eye view, it is relatively simple to spot errors and become familiar with your finances.


This report also comes in handy when you are looking over your budgeted numbers and comparing them to your actual amounts. If you are off by a significant amount, you can quickly view the transactions that are included in that specific account and decide your next steps to maintain or adjust your budget accordingly. You can spot large transactions that may be throwing your budget off and utilize this information for the next year when working on your budget. If you are looking for a quick way to view all the transactions in your checking account, you can use this report as well. You will simply generate the report for the dates you want to review, and then you will see your checking account in the asset section of the General Ledger Detail Report. You could also customize your General Ledger Detail Report so that it will only show the specific account or accounts you are inquiring about.


When you are using a computerized bookkeeping solution, one of the main benefits is to be able to record transactions one time and have the ability to view those transactions in multiple different ways. The General Ledger Detail Report is another example of how you can easily capitalize on this information so that you can stay on top of your financial statements. If you are utilizing a manual bookkeeping system, you can still get this same detail reporting by using your spreadsheet. Overall, a General Ledger Detail Report accounts for all your accounts and transactions and ensures everything stays in balance with your debits and credits.


Whenever I am working with my clients, whether it is for bookkeeping, business strategy, or coaching, we are always looking for ways to simplify processes and help them understand and manage their business finances so that they are efficient and confident in everything they do in their business and their personal lives. Having my clients utilize their General Ledger Detail Report is just one example of this. I am excited to announce a special opportunity I have coming up that will help you feel just as confident in your business. My 100th podcast episode is coming up in the next few weeks, and to celebrate, I am giving away a four-week business strategy and coaching package to one of my lucky podcast listeners. My one-on-one business strategy and coaching sessions really help clients get specific about what they need to work on to reach the next level in their business. We make plans and follow through on my client’s intentions that lead their business to the success they want to achieve. As a CPA, Business Strategist, and Coach, I help business owners just like you to push through and stop limiting yourself with the success you could be achieving in your business. Whether you are unsure of the next steps you need to make, you want to get more sales but are unsure how to do it, or you need to gain a deeper understanding of your business finances so that you can be more profitable, I can help. Clients come to me because they know that I am knowledgeable in both the financial aspect of business as well as how important it is to have a strategy and work through your mindset and whatever is holding you back from reaching the highest vision you have for yourself and your business. By helping you make the right decisions and holding you accountable so that you follow through with your plans, you get to see your results much faster. You could be seeing success like this in your business. If you’d like to be entered in the drawing for the four-week one-on-one coaching package I am giving away, you need to sign up for one of my free consultation sessions by September 3rd, 2022. I always offer these free consultation sessions, but when you sign up for one of my free consultation sessions from now through September 3rd, 2022, you could also be the winner of the four-week business strategy and coaching package I’m giving away. You can go to www.FinancialAdventure.com/Contact-Us to schedule your session. During this consultation, we’ll spend up to one hour together going over where you currently are in your business, where you’d like to see yourself and your business in the future, and take action to get you started on the path to success. You’ll walk away with action steps so that you can start moving forward in your business right away. If you are already a one-on-one client of mine, that’s not a problem. Just let me know that you’d like to be entered into the drawing on our next call, and you’ll also have a chance to win. I’ve been helping business owners and bookkeepers achieve their goals for over 25 years, and it’s the best feeling when I see the joy it brings my clients when they follow through with their aspirations. I am looking forward to meeting you in a consultation session soon. I’ll post links to this and other valuable resources for business owners and bookkeepers where you are listening to this podcast and in the show notes.


And, you know I’m going to ask…what’s at least one thing you will take away from this episode that will help your business succeed and grow your bottom line? If you need some accountability, join our PRIVATE Facebook community and post your action item, we’d love to support you.



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