DIY accounting made simple

The most difficult part in preparing accounts is not the double entry but how to keep all the supporting document properly.

Let us go through all sections step by step.

Payment

every payment need to be supported by document such as payment vouchers, invoices, cash bills or official receipts as proof of payment.

file all the supporting document according to date.

Receipt

every receipts need to be supported by official receipts,cash bills or letter so that we know where the money from either from trade debtors, cash sales, loan from others. etc.

file all the document according to date.

Purchases

file all the purchase invoices according to date separately from expenses file.

Sales

file all the sales invoices according to date separately from supporting document of other nature of receipt.

Others

transaction that did not involve cash need to be supported by letter or other form of document stating the nature of transaction.

some example of such transaction is contra payment, withdrawal of goods for own use, goods returned, discount given, etc.

Bank

every money bank in need to be supported by bank in slip and file according to date.

every payment need to be supported by payment voucher authorised by specific person stating the nature of payment clearly.

the cheque bulks have to state all the nature of payment clearly and file properly.

Recording of all transaction

Once all the supporting document has been kept properly, recording of transaction is simple by the use of accounting software that is available in the market.