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Value In vs Value Out.

If more is coming in than going out the business should be healthy.

A general ledger is a simple listing of your actual income and expenses. Unlike a budget sheet that lists your expected income and expenses, or a receivables or payables report that shows what you owe or are owed, a ledger records transactions only as they happen. Even if you have only one bank account you use for your business, it is a good idea to keep a general ledger to spot any mistakes you or your bank might make. Do this by performing a monthly reconciliation, or comparison of your ledger to your bank statement

Cash Accounts:

  • 1110 Cash in Bank
  • 1120 Petty Cash

Revenue Accounts:

  • 2110 Accrued Revenues
  • 2120 Cash Revenues
  • 2130 Noncash Revenues
  • 2140 Other Financing Sources

Short-term Payables:

  • 3110 Accounts Payable
  • 3120 Interest Payable
  • 3130 Claims and Judgments Payable
  • 3140 Contracts Payable