Book Keeping Task/Adjusting entries
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< Book Keeping Task(Difference between revisions)
(New page: As a general rule, if you find you're ever creating "adjusting entries", we should stop and try to think of another way. Such adjusting entries are a sign that the books aren't accurate. ...) |
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| - | As a general rule, if you find you're ever creating "adjusting entries", we should stop and try to think of another way. Such adjusting entries are a sign that the books aren't accurate. Almost always we can find a way to be accurate and not need an adjusting entry. People inspecting books will likely see adjusting entries as a red flag. If we ever do have to use them, they should be heavily documented, explaining why they are there and why | + | As a general rule, if you find you're ever creating "adjusting entries", we should stop and try to think of another way. Such adjusting entries are a sign that the books aren't accurate. Almost always we can find a way to be accurate and not need an adjusting entry. People inspecting books will likely see adjusting entries as a red flag. If we ever do have to use them, they should be heavily documented, explaining why they are there and why no other way of bookkeeping could be used. I would expect to see a paragraph of text explanation. |
Current revision
As a general rule, if you find you're ever creating "adjusting entries", we should stop and try to think of another way. Such adjusting entries are a sign that the books aren't accurate. Almost always we can find a way to be accurate and not need an adjusting entry. People inspecting books will likely see adjusting entries as a red flag. If we ever do have to use them, they should be heavily documented, explaining why they are there and why no other way of bookkeeping could be used. I would expect to see a paragraph of text explanation.
