Account books to be kept for a new company

As a new company, it's essential to maintain accurate and organized financial records to ensure compliance with tax laws, make informed business decisions, and track your company's financial performance. Here are some essential account books to keep:

  1. General Ledger: A general ledger is a comprehensive record of all financial transactions, including income, expenses, assets, liabilities, and equity. It's the foundation of your company's financial reporting.
  2. Accounts Payable Ledger: This ledger tracks all outstanding debts or invoices owed to your company by suppliers, customers, or employees.
  3. Accounts Receivable Ledger: This ledger tracks all outstanding debts or invoices owed by your customers to your company.
  4. Cash Book: A cash book records all cash transactions, including receipts and payments, to ensure accurate tracking of your company's cash flow.
  5. Journal: A journal is a record of all financial transactions, including debits, credits, and explanations. It's used to record transactions that don't fit into specific accounts, such as miscellaneous income or expenses.
  6. Inventory Ledger: If your company sells physical products, an inventory ledger tracks the quantity and value of goods in stock, as well as any inventory movements (e.g., purchases, sales, or transfers).
  7. Payroll Ledger: This ledger tracks employee salaries, wages, and benefits, as well as any taxes and deductions.
  8. Fixed Asset Ledger: This ledger tracks the acquisition, depreciation, and disposal of fixed assets, such as property, equipment, and vehicles.
  9. Accounts Receivable Aging Schedule: This schedule shows the outstanding balances of accounts receivable, grouped by age (e.g., 30 days, 60 days, 90 days, etc.).
  10. Accounts Payable Aging Schedule: This schedule shows the outstanding balances of accounts payable, grouped by age (e.g., 30 days, 60 days, 90 days, etc.).
  11. Trial Balance: A trial balance is a list of all general ledger accounts, with their corresponding debit or credit balances, to ensure that the accounting equation (Assets = Liabilities + Equity) is balanced.
  12. Balance Sheet: A balance sheet provides a snapshot of your company's financial position at a specific point in time, including assets, liabilities, and equity.
  13. Income Statement: An income statement (also known as a profit and loss statement) shows your company's revenues, expenses, and net income over a specific period (e.g., month, quarter, year).
  14. Cash Flow Statement: A cash flow statement shows the inflows and outflows of cash and cash equivalents over a specific period, helping you understand your company's liquidity and financial health.

Remember to maintain accurate and up-to-date records, and consider consulting with an accountant or bookkeeper to ensure compliance with accounting standards and tax laws.