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11 Essential Bookkeeping Accounts for Any Small-business Owner
By: Lita Epstein
Posted: October 31, 2012, from the November 2012 issue of Skin Inc. magazine.
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5. Loans payable. Inevitably, your company will need to purchase major items, such as equipment and furniture. Unfortunately, you may find that you don’t have the money to pay for such purchases. The solution is to take on long-term loans to be paid over more than a 12-month period. The loans payable account allows you to monitor the activity on these loans in order to get and keep the best rates, and make all loan payments on time and accurately.
6. Sales. No business can operate without taking in cash, through sales of the skin care facility’s products or services. The sales account is where you track all incoming revenue collected from these sales.
7. Purchases. Purchases are unavoidable. In order to have a tangible product to sell, your skin care facility has to purchase a finished product from a supplier. In the purchases account, you track the purchases of any raw materials or finished goods.
8. Payroll expenses. You must pay employees to get them to stay around; that’s a fact of business. To keep up with what is, for many businesses, their biggest expense, track all money paid to employees in the payroll expenses account.
9. Office expenses. From paper, pens and paper clips to costs related to office machinery, these expenses tend to creep up if they aren’t carefully monitored in the office expenses account.