Introduction to Pre-Accounting

 

For entrepreneurial individuals who dare to step into the ever-changing world of commerce, one of the first major challenges is not knowing how to manage a company’s pre-accounting processes. Whether you operate in software development or run a manufacturing workshop, it is nearly impossible to keep a business sustainable without properly handling pre-accounting. In this guide, we have compiled the essential information you need to know about pre-accounting.

 

Pre-Accounting Guide

 

Before we begin, there is one important point that should be clearly stated:

 

Accounting and Pre-Accounting Are Not the Same

 

Many new entrepreneurs mistakenly believe that their accountant is responsible for managing the entire financial structure of the company. In reality, an accountant mainly handles legal obligations and official documentation. The monitoring of daily financial transactions and internal financial order falls under pre-accounting, which should be maintained within the company itself. In most small and newly established businesses, this responsibility often belongs directly to the business owner. Proper document tracking is a fundamental pillar of financial management.

 

All financial data required to manage a company’s finances—such as income and expense records, inventory movements, and customer or supplier accounts—are part of pre-accounting. These processes are carried out and monitored internally.

 

What Does Pre-Accounting Cover?

 

One of the key requirements for running a business smoothly is having a solid understanding of how pre-accounting works. Being familiar with pre-accounting terminology and daily procedures is directly linked to maintaining financial control within the business.

For this reason, we have outlined the essential elements of pre-accounting below. Knowing these commonly encountered concepts will significantly simplify your daily operations.

 

 

Core Components of Pre-Accounting

 

• Invoices: All purchases and sales of goods or services must be officially documented through invoices. Having knowledge of electronic invoicing systems is essential before entering the business world.
• Current Accounts: All receivables and payables related to customers and suppliers are tracked through current accounts, enabling effective debt and credit management.
• Bank Transactions: Money deposited into or withdrawn from bank accounts, bank transfers, and paid or received checks are all part of pre-accounting records.
• Checks and Promissory Notes: In commercial life, payments are not always made in cash. Transactions conducted via checks or promissory notes must be properly recorded and monitored.
• Payroll Records: Calculating employee wages and managing payroll processes are also included in pre-accounting. Accurately determining the total cost of an employee is crucial for financial planning.
• Inventory Management: Goods stored in warehouses constitute a company’s inventory. Businesses involved in buying and selling products must regularly track inventory inflows and outflows.

 

 

How Is Pre-Accounting Maintained?

 

There is no single standard method for keeping pre-accounting records. Many businesses use notebooks, spreadsheets, or basic software tools to manage their records. Companies that employ in-house accounting staff may prefer desktop accounting programs.

 

However, for small businesses without specialized personnel, managing pre-accounting can become challenging. In such cases, practical and user-friendly web-based solutions can help ensure that daily pre-accounting processes are carried out efficiently and accurately, without requiring advanced technical knowledge.