Most people are uncertain as to what is involved in general journal activities and transactions. The general journal involves transactions that pertain to adjusting, closing, and reversing entries in preparing your books to your accountant and/or CPA at the year end. Inter account transfers, mortgages, fixed assets, depreciation, short and long term liabilities, loans, and personal expenses are allocated using the general journal. These transactions help to reduce the amount of work that the employer’s CPA will need to do and reduces costs to the employer significantly. Capitola bookkeeping cannot emphasize enough how important these steps are in saving you money. Here is a list of good bookkeeping practices pertaining to general journal transactions.
These bookkeeping practices help to ensure that you have done much of the work for your CPA, and have saved a lot of money in the process. Tracking your liabilities helps you make better cash flow decisions, and setting up your mortgages and fixed assets and their depreciation assists immensely in achieving an easy year-end reconciliation process. This can help you save bookkeeping costs and year-end Accountant/CPA fees. Many of the fixed transactions can be setup to post automatically where only a date and/or amount needs to be changed from time to time. Craig's Bookkeeping wants to help you save these costs, as many of them are unnecessary.