Most people will develop a pattern to enter items into their bookkeeping systems. Developing a pattern and having a checklist helps to ensure you did not forget something on your books. The pattern that I generally use is in this order.
- Record Deposits
- Record Bank Transfers between accounts
- Record recurring debits on the bank account for the month
- Record purchases of inventory
- Record credit card purchases
- Record checks
- Record debits per bank statement
- Record Cash purchases
I will discuss some of the nuances on some of these items further.
Next, what should I know before recording bank deposits?