The finance department of every business acts like a backbone for a certain business. All financial matters can be described and reported through an organized accounting system in Uganda. Accounting is an organized system to record, analyze and summarize the financial transactions and dealings. Accounting enables to evaluate the balance between expenses and income. You can better determine the profit and loss, track the assets and liabilities, and monitor the cash flow of the business by having a look upon the accounting reports.
Here are some basic concepts are given to understand the accounting software in Kampala-Nansana-Kira-Ssabagabo-Mbarara-Mukono:
All accounting system in Uganda keeps the record in the form of financial statements. These statements consist of a summary of cash flow, income statements, expense statements, shareholder accounts, and balance sheets as well.
The balance sheet represents assets, liabilities and equity account of share-holders to better understand the upcoming revenues and challenges.
Types of accounts
There are five different categories of handling the accounts:
- Assets: Asset account of any business may include cash, purchases, receivable amount or any inventory, expenses, investments and property owned by the business.
- Liabilities: Liabilities are the financial debts that may include payable accounts, earned and unearned premiums, and accrued revenues.
- Equity: Thedifference between assets and liabilities is called equity. It consists of common stock and treasury stock as well. It is the payment that share-holders or business owner issues to initiate the business.
- Revenue: Revenue accounts may include sales and services, interest-based income and revenues.
- Expenses: Expenses accounts deal with the sales, depreciation, and repairs in the business.
Who handles the accounting system?
Larger or smaller enterprises usually hire an accountant to deal with the financial matters of the business. An accountant keeps a complete record of income, expenses, liabilities, assets, loans, the proportion of shares by the stakeholders, and many other relevant tasks.
Initially, people used to document all this record manually in files and registers. Now a day, accounting software in Uganda has made the financial matters at hand. Just enter a few specific data required and you can get any kind of log sheet and reports from the software. The accountants who have never used accounting software can use it easily by having an accounting software demo.
The diversity of the accounting operation depends upon the type of business. Whatever business you run, it is better to set rules and regulations for financial matters.