General Ledger and It’s Benefits For Your Company

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Heniputra.org – Recording deals that occur in a specific duration is the essential point for a business. With no deal record, a business can’t notice the deals that occur in a specific duration. If a business doesn’t know about any deals in a specific duration, there may be deadly repercussions, such as corruption criminal offenses to the company insolvency. Hence, A business can use a basic journal as a tool to record all deals. Did you know the meaning of it? This article will provide information to the visitors about the meaning and benefit. before that you also need to know that component of the ERP software can help overcome this

Basic Journal Meaning

A basic journal is a tool to record monetary deals, both debit or credit accounts, that show up in a specific duration. In various other words, this also have a meaning as a book owned by a business which contains company deals documents.

Among the experts from Indonesia, Ahmad Manarul Hakim revealed his opinion on the meaning of a basic journal. Inning accordance with him, it is such as a book or unique form that used to record all monetary deals chronologically that describe the deal day including the deal information. Thus, It can be name, account kind, and small of balance in both debit or credit columns.

Concepts in Putting together a Basic Journal

Several concepts are essential to know in putting together a basic journal. It’s necessary to determine the company’s monetary deals evidence, billings, and invoices in putting together it. The accounts should be split and classify right into several kinds such as funding, financial obligation, or property.

Additionally, there should be a decision in a journal for debit and credit accounts that relates to the deal. The essential point in putting together it’s to record all deals inning accordance with the evidence of the deal.

Basic Journal Benefits

A basic journal has various benefits for the company. Through this, a business will obtain information about the accounts changes. Additionally, a business can know the debit and credit balance. The presence of a journal can also give information about the balance quantity that tape-taped in several account. Additionally, a journal can be a recommendation to find out a deal is posted to the basic journal or otherwise.

Basic Journal Functions

It has several functions, varying from informative, historic, direction, tape-taping, and analyze function. Here’s the description of each function:

Informative function

First, it provides many information and explanations of the deal tape-taping by a business.

Historic function

All deals that a business carries out are tape-taped in a journal based upon the deal day. As a result, It provides company deal daily continuously.

Direction function

Process of inputting information right into a journal can be said as an direction function. The tape-taping in it’s not just tape-taping the deal documents that occurs, but also being a debit or credit regulate.

Tape-taping function

In a basic journal, all deals that occur in the company must be tape-taped. In action, it’s necessary to record first the riches, costs, funding changes, and earnings right into it.

Evaluation function

In a basic journal, there are a deal tape-taping that are arising from deals evaluation through debits and credit ratings that are affect. Consequently, this evaluation consist of the category of account names, debit or credit documents, and the variety of deals. this can be handled well by the ERP system.

Several Action in Putting together a Basic Journal

In putting together a journal, a business must follow several actions to obtain ease on it. Gathering the evidence of deals is the first action in putting together it. The duration of deal evidence can be within a month or in a specific duration.

Finally, to analyze all the company deals is the next step of putting together it. Where this evaluation aims to obtain information about the effect of deals. Besides, this evaluation also aims to earn a fundamental bookkeeping equations. In putting together a journal, it’s also necessary to earn modifications of deals that made by a business.

Conclusion

In brief, a basic journal has been a tool to record all company deals. Through this, a business can know all the deals in a specific duration. Moreover, It also have various functions that make easy a business in deals tape-taping. Among them is informative function.

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