Basic accounting routines and entries – revenue and receivables

With your sales revenue, with your process over your company’s revenue and receivables it’s crucial you have routines in place on one hand and as a general rule, but it’s also important to have your everyday accounting entries in place. 

The first step you ought to do and take is mapping out transactions that mostly take place or you imagine could take place within your sales process. Mapping those entries enables you to ensure that you have appropriate accounts in place (think also about different sales tax rates if applicable and if it would be wise to have different accounts for different sales tax rates), respective document management incorporated (storage of invoices for instance and so on), whether some documents need to be signed and if so, how’s that scheduled to take place and so much more depending on your type of business (i.e. if you’re shipping goods, where and how do you store shipping documents, how have you managed agreeing shipping documents to invoices being sent to customers to ensure accuracy in what’s being ordered and what’s being sent out).

Once that’s all sorted, it’s time for mapping out the basic accounting entries you ought to record in specific instances. Once you have your situations in place, you have your routine accounting entries written down, only then can you ensure that sales revenue is being recorded always the same. Keeping true to what was initially planned (and ensuring that this initial plan indeed followed also your needs when it came to reporting, i.e. information needed for filling out tax reports) ensures that your accounting actually supports your reporting in the long run.