BASIC BOOKKEEPING:
Keeping track of your income and expenses month by month.
Fill in your income and expenses into the table below, that you can download here.
Month: ________________
Tip: Cash out = Expenses = cash payments
Cash in = Receipts
You'll need the following information:
Dates, details of income or expense, No = the number of the transaction (which can be given as you fill in the expense or it can be the number of the particular transaction on your bank statement or the number of the check you've written out to pay for the expence).
The Amount of the expense, such as: Food, car, phone, power, water, TV, rent /mortgage/board.
Abbreviations: Inv. = Invoice number, No. = Number of Transaction
Totals:
At the bottom of the table, you'll have 2 totals: Total of income and the total of your expenses. for that particular month.
You fill in a table like the one you downloaded for every month.
Compare now the Total spent in your Bank Amount vs. the Total earning for the month.
Total spent in Bank Amount (a) – Total earnings for the month (b) = Gain/Loss
Gain: is when you have money left after the difference between the 2 amounts above. For example:
a ($100) – b ($60) = ($40) Gain
Loss: is when you don’t have money left, owe money or are in an overdraft in your bank account. For example:
a ($100) – b ( $130) = (-$30) Loss
Overdraft: The bank may give you an overdraft on your bank account. You can use this money if you don’t have enough money/earnings coming in. But it is better not to. When you close the bank account, whatever money is owing in the overdraft of the account, you’ll need to pay immediately. The bank will decide on how much overdraft you can have on your account in accordance to your earnings.
Keeping track of your income and expenses month by month.
Fill in your income and expenses into the table below, that you can download here.
Month: ________________
Tip: Cash out = Expenses = cash payments
Cash in = Receipts
You'll need the following information:
Dates, details of income or expense, No = the number of the transaction (which can be given as you fill in the expense or it can be the number of the particular transaction on your bank statement or the number of the check you've written out to pay for the expence).
The Amount of the expense, such as: Food, car, phone, power, water, TV, rent /mortgage/board.
Abbreviations: Inv. = Invoice number, No. = Number of Transaction
Totals:
At the bottom of the table, you'll have 2 totals: Total of income and the total of your expenses. for that particular month.
You fill in a table like the one you downloaded for every month.
Compare now the Total spent in your Bank Amount vs. the Total earning for the month.
Total spent in Bank Amount (a) – Total earnings for the month (b) = Gain/Loss
Gain: is when you have money left after the difference between the 2 amounts above. For example:
a ($100) – b ($60) = ($40) Gain
Loss: is when you don’t have money left, owe money or are in an overdraft in your bank account. For example:
a ($100) – b ( $130) = (-$30) Loss
Overdraft: The bank may give you an overdraft on your bank account. You can use this money if you don’t have enough money/earnings coming in. But it is better not to. When you close the bank account, whatever money is owing in the overdraft of the account, you’ll need to pay immediately. The bank will decide on how much overdraft you can have on your account in accordance to your earnings.