Personal Accounting

Personal Accounting

If you have a checking account, adjust the balance regularly to make up for discrepancies between what's on your bank statement and what you've written down. Your checking account may be an interest-bearing account and you want to record the interest you earn from it. Some personal expenses are deducted from your income to reduce your taxable income.

Of course, if you have a checking account, adjust the balance regularly to make up for discrepancies between what's on your bank statement and what you've written down on your checks and deposits. Many people get their bank account statements mailed to him once a month.

Adjust the checkbook balance to account for any checking account charges not recorded in the checkbook. Some of these may include ATM fees, overdraft fees, special transaction fees, or low balance fees if you are required to maintain a minimum account balance. Also, adjust your checkbook balance to record previously unrecorded credits. They may include automatic deposits or refunds, or other electronic deposits. Your checking account may be an interest-bearing account and you want to record the interest you earn from it.

You should also check whether your records were correct or whether your bank made an error.

Another form of accounting we all dread is filing annual federal income tax returns. Many people use his CPA to make money. Others do it themselves. Most forms contain the following elements:

Income All money earned from operating or owning property, unless there are specific income tax exemptions.

Personal Allowance This is a specific amount of income that is exempt from taxes.

Standard Deduction Some personal or business expenses are deducted from your income to reduce your taxable income. These costs include items such as mortgage interest, charitable donations, and property taxes.

Taxable Income This is the balance of your taxable income after personal allowances and deductions have been taken into account.