Clearing up Accounting Backlog

Clearing up Accounting Backlog

What is accounting Backlog

Accounting backlog means estimates, orders, invoices, etc that are pending to be updated or processed in the books of accounts. These incomplete records represent unearned incomes that remain available for the company to earn.

Why should backlogs need to be cleared?

If you lose track of all expenses, revenue and cash flow then you might end up asking where all the money has gone

1. It may break your business
2. It shows the actual revenue and cost position
3. Will make you identify the production or service capacity
4. Able to understand due bills and invoices
5. To identify the areas of revenue loss

How to clear?

You should know how the money is being spent or earned, that is the start of maintaining an accounting

1. Reconciling Bank and Petty cash
2. Linking estimates, orders and delivery notes to sales
3. Passing payments against bills
4. Calculating prepaid expenses and advances received
5. Maintaining a payroll record
6. Aging the debtors and creditors
7. Generating inventory report
8. Analysing working capital

How we can help?

We specialise in Zoho Books and Tally and have done several backlog clearing tasks.