Every line of business should have an organized

Every line of business should have an organized way of bookkeeping. This is the only way to determine clearly if the business is earning or not. Bookkeeping has evolved into something of higher technology, and yet, the essence is the same. The spreadsheets contain the assets and liabilities and expenses of the company and this will also show any assets that are liquidated. Debits and credits are there as well. In essence, there may have been changes and yet the principles are still intact.

What technology made easier is for the calculation of these numbers. There is no more need to manually compute things so the margin for error is lesser. As in every company, one has to know the basics of accounting and measure its effectiveness through checking the process against an accounting scorecard.The first thing that the scorecard should contain is the revenue of the company. Definitely, this is the net income of the company once all necessary costs have been subtracted. These costs include capital for raw materials, salaries of employees, non-productive hours, and other non-tangible items that the company needs to pay for. A simple glance at these numbers will show a business leader whether the revenue is satisfactory or if there is a potential area of improvement and cut costs.Another thing that needs measurement in the scorecard is the yield.