Ledger Medial Accounting & Tax in Greenville, South Carolina, provides comprehensive tax services for both businesses and individuals alike. From monthly Bookkeeping Services to financial statement creation and interpretation, strategy/planning/projections, we are here to assist you.
Table of Contents
The Ledger Medial is the central hub of finance teams, containing all company transactions–accounts payable and receivable, cash on hand, capital assets, inventory, investments, liabilities, equity stakes – plus much more.
This is the foundation for many financial statements, such as the income statement and balance sheet. Thus, it plays a pivotal role in any business’ accounting process.
General ledgers make filing taxes simpler for businesses. All income and expenses are gathered together, making it simpler to compare bills and invoices with tax returns to identify any discrepancies.
A trial balance, which displays each account and its beginning and ending debit or credit balances, can be used to verify the accuracy of general ledger entries. It’s especially helpful in identifying any incorrect or fraudulent accounts.
Accounts payable are short-term debts owed to vendors and suppliers. Common items include supplier invoices, legal fees, and contractor payments. Ledger Medial offers accounting and Tax Services.
Accounting provisions (APs) can be classified as short-term (subject to a fiscal year) or long-term payables (over one fiscal year). On an accounting balance sheet, these transactions would appear under current liabilities.
Many organizations opt for automation of their accounts payable process by using software to enter bills and payments. This helps strengthen tax compliance, expedite supplier approvals, and eliminate paper trails.
Accounts payable are an essential element of business operations and a company’s financial health. Mismanaged accounts payable can have a detrimental effect on a company’s credit rating and stability, making it harder for lenders to extend loans.
Accounts receivable refer to the money your customers owe you for goods and services provided. This includes purchases made on credit as well as payments made for subscription or installment services.
Businesses typically record sales invoices, daily cash register totals, and cash sheets in their accounts receivable journal. Doing this helps guarantee the correct amount is posted to each customer account each day.
Your accounts receivable ledger balance should appear as current assets on your balance sheet since you expect payment within a short period of time. This provides an indication of the financial health of your business.
Once a client or customer pays an invoice, you should credit accounts receivable (to erase what you owe) and debit cash to reflect the payment. If it was for an expense, credit the appropriate expense account and debit Accounts Payable to increase it. Doing this keeps an accurate picture of your finances at all times.
Payroll accounting involves recording and tracking employee compensation data such as money withheld from paychecks, deductions, and taxes, as well as Accountant share of benefit contributions.
Your business may wish to set up multiple payroll ledgers, each for different types of employees, businesses you pay, and private contractors. Each ledger should be set up with the necessary fields so you can analyze payments and other payment-related data for specific financial management metrics.
Finance managers sometimes utilize a payroll ledger to monitor cash outflow over specific time intervals. Doing this allows them to ensure their operations are running leaner by analyzing spending trends and paying individuals or entities in ways that save them money.
Additionally, you must record credits for all types of tax withholdings, such as federal and state income taxes, FUTA, SUTA, and FICA. Furthermore, include a credit for any benefits plans you provide your employees, such as mandatory workers’ compensation insurance.