Account Types

There are a total of 13 basic account types. They are:

Seven Asset Accounts

Cash

Use this account to track the money you have on hand, in your wallet, in your piggy bank, under your mattress, or wherever you choose to keep it handy. This is the most liquid, or easily traded, type of asset.

Bank

This account is used to track the cash balance that you keep in institutions such as banks, credit unions, savings and loans, or brokerage firms – wherever someone else safeguards your money. This is the second most liquid type of account because you can easily convert it to cash on hand.

Stock

Track your individual stocks and bonds using this type of account. With these types of assets, you may not be able to easily convert them to cash unless you can find a buyer, and you are not guaranteed to get the same amount of cash you paid for them.

Mutual Fund

This is similar to the stock account, except that it is used to track funds.

Currency

If you trade other currencies as investments, you can use this type of account to keep track of them.

Accounts Receivable

This is typically a business use only account in which you place outstanding debts owed to you.

Asset

For personal finances, use this type of account to track “big-ticket” item purchases that significantly impact your net worth.

Three Liability Accounts

Credit Card

Use this to track your credit card receipts and reconcile your credit card statements. Credit cards represent a short-term loan that you are obligated to repay to the credit card company.

Accounts Payable

This is typically a business use only account in which you place bills you have yet to pay.

Software Liability

Use this type of account for all other loans, generally larger long-term loans such as a mortgage or vehicle loan. This account can help you keep track of how much you owe and how much you have already repaid.

One Equity Account

Equity

It represents what is left over after you subtract your liabilities from your assets, so it is the portion of your assets that you own outright, without any debt.

Income Account

Income

Income is the payment you receive for your time, services you provide, or the use of your money.

One Expense Account

Expense

Expenses refer to money you spend to purchase goods or services provided by someone else.

How to measure productivity of a business

When dealing with business scenario, irrespective of its success measuring the productivity is a major factor. Strangely some business people are left with no answer when they are asked about the methodology to measure the productivity of a business. In few cases, business might yield unexpectedly a high profit that might satisfy the organization. But the businessmen will not be aware of the fact that the same business would do three times better while measuring the productivity.

Earlier there was a myth that business can either be improved or cannot be improved, but now it is not so. Productivity can be measured with certain business aspects in such a way that the business operations get reviewed at all the stages with the evaluation of their improvements. Under the pricing options see what could be measured to enable tracking of costs. Are the customers satisfied with the business pricing of the company.

In the conventional business, quality for the products was not given importance as it was considered to be an expensive one. Now the steps have to be taken to track the two critical indicators of quality, say the defects and variance. Next is the performance of the company’s employees . This plays a very important role in determining the productivity. So their performance should be tracked in order to predict the future productivity and if any improvements needed should be indicated.

Desired business outcomes are determined along with any other outcome that would leverage the further business activities. Risks are not anticipated in a business but it is obvious for it to occur. Try to measure the risks at an early stage that your customer cares about. Evaluate the feedback system from the employees and customers too. To improve the business henceforth, the above factors are to be followed and measured accordingly.