Simple bookkeeping software for home only software#

In your accounting software you post CHF 150.00 to the debit side of the bank account (because you have received money by bank transfer) and the credit side of the receivables contra account (because a receivable was settled). Both accounts are on the assets side of the balance sheet.Ī customer settles an invoice (receivable) for CHF 150.00 by bank transfer. In your accounting software, you post CHF 87.50 to the credit side of the cash account (because it is a cash transaction and you have spent money) and to the debit side of the office supplies account. The following simplified examples should help clarify double-entry bookkeeping:Įxample: cash expenditure for office supplies

The credit account is also known as a 'contra account'. Remember: the debit side is always on the left and the credit side is always on the right of the account. Examples of accounts on the liabilities side include: equity, trade payables or debt capital. Perfect for Freelancers, Landlords, Truckers, Real Estate Agents, and others.

In a liabilities account the exact reverse happens: disposals are posted on the debit side and additions are posted on the credit side (the account decreases on the debit side and increases on the credit side). Simplified ledger-style accounting software for small business professionals.

Examples of accounts on the assets side include: cash, vehicles, machines and buildings. For example, if you buy goods and pay for them in cash, your inventory (debit) will increase and your cash (credit) will decrease.

In an assets account additions are posted on the debit side and disposals are posted on the credit side (the account increases on the debit side and decreases on the credit side). In order to take your business to the next level, utilize small business accounting software to manage your company's finances & accounting operations.

This involves posting the entry once on the debit side and once on the credit side:

You can easily check whether your bookkeeping is correct, because the balance in your bank account or cash register must match the balance in your bookkeeping after entries are posted.

Clear, easy to follow bookkeeping helps you avoid problems, for example with the tax authorities.

You know what proportion of your business is financed by equity or debt.

The information gained from double-entry bookkeeping can be used to develop other key performance indicators that help you measure and increase your company's success: for example, cash-flow and liquidity.It provides a large amount of useful additional information: for example, how much money your company has spent on specific things, the value of your stocks, and exactly how much money your company has on any given day.It does bookkeeping for your financial accounts.

Simple bookkeeping software for home only windows#

Double-entry bookkeeping, on the other hand, is an important tool for a company's success. HouseHold Accounting for Windows is a personal finance product designed for home users or a small business. Simple bookkeeping (cash-basis accounting) can only show whether an account is running a profit or loss.