Aug 05,2020      BY   Sharafudhin Mangalad

4 Easy Accounting Tips For Non-Accountants

Are you searching for easy accounting tips? Accounting is not easy for everyone especially if you are a non-accountant, but you can definitely do it. 

Imagine having to keep day-to-day or an annual record of every detail of money spent. Bills, debts, marketing expenses, receivables, etc can be managed easily once you learn a few basic tips. Managing accounts needs knowledge as well as practice. However, use easy tips and tricks to manage to account if you are a non-accountant.

To do accounting in a company, you must possess some relevant skills. Develop the skills and learn some easy tips to handle accounting in your company.  Check out the basic skills you need to develop:

  • Analytical Skills.

  • Organization skills

  • Critical Thinking. 

  • Interpersonal Communication.

  • Time Management.

  • Spreadsheet Proficiency.

4 Tips For Non-Accountants

Now, here are 4 tips that would help you become better at accounting:

1. Know your company’s account codes

Do you know your company’s account codes? If not, this is the first step you have to learn. 

One of the core responsibilities of an accountant is to know your company’s account codes. You will have to monitor and manage every transaction made by your employer. If you are not familiar with the company’s account codes, it can lead to a number of wrong transactions and errors in accounting. So, get to know your company’s account codes.

Knowledge of the company’s account codes is undoubtedly essential for allocating transactions to the correct code. The balance of an asset is to be strictly maintained and you can do it only if you are aware of the company’s codes. Using the correct codes will help you avoid any re-work.

2. Dealing with complex transactions

Learning how to segment different transactions is important. If you keep piling up all types of transactions without organising, then chances of you making an error in accounting increase. You need to segment different transactions to avoid any type of complication or errors to avoid confusions in the later stages. You need to keep all the receipts, ledgers, and debt documents etc always organized.

Some transactions might be difficult and complex to solve. It may require input from a trained accountant and if so, don’t hesitate to get help. Business or property purchases and vehicle or equipment purchases are complex transactions regarding a non- accountant. If required to manage it, go for advice from trained accountants. Ensure that the work you do or the help you seek to an accountant is precise. 

If the transaction involves large numbers, make sure you are accurate or else, you will have to rework on it.  A foundation course in accounting can help you in various ways. Accounting for the non-accountants course in Abu Dhabi will help you learn the basics of accounting, which are universally applicable to all businesses.

3. Pay Attention to Receivables

You must pay close attention to receivables and be accurate about it. When an invoice is issued, you record a receivable and you have to check if the customer has an outstanding balance.

When the customer pays you, you must update their invoice, and it should be marked as paid. Keep track of your transactions to avoid unnecessary errors.  You must ensure you have not left with a lot of customer deposits in your revenue account and a report of your receivables.

4. Keep Personal vs. Business Accounts Distinct

A lot of small business owners use some of their personal and business accounts together. Using your personal bank account for business can be troublesome.

Having a separate bank account for business needs makes it easy for you to see how money is being spent. You can easily avoid confusion if you do not mix your personal and business transactions. Manage separate credit cards, checking accounts and ensure that only business accounts are used for business-related costs. 

Wrapping Up

We have already discussed 4 tips to manage to account if you are a non-accountant. Be patient while managing accounting because we know it’s not easy.  Also,  keep practising because you cannot master it in a day and practice can make you an expert.

Sharafudhin Mangalad

Sharafudhin Mangalad is the managing director of a chain of educational institutions in the UAE. With more than 10 years of experience in the education industry, he successfully runs Edoxi Training Institute in Dubai and Time Training Center Abu Dhabi.

He is a strategist and a leader able to steer the company to the most profitable direction while also implementing its vision, mission and long term goals. He always makes sure that his business continues to grow by identifying, developing and implementing the new strategies. He leads his team in alignment with the company's vision and values while preparing and implementing comprehensive business plans to facilitate achievement.

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