Accounting and bookkeeping starts right from the debit and credit. Debit and credits are the fundamentals of accounting. Without this debit and credit nothing can be accomplished in accounting.

In simple words debit means expenditure and credit means revenue. Whenever an organization is making payments it means the organization is debiting some amount. Similarly when an organization is getting some revenue it is said that the organization is getting credit.
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Marginal costing is an accounting term in which costs and expenses are identified by their variability according to the volume of goods bought or produced. By analysing costs according to the variability in prices can significantly improve profit efficiency levels within a business.

Business costs and expenses as expressed as a unit cost of a product can vary significantly as purchase or production volumes change. The first stage in using marginal costing to generate higher levels of profit is to identify the variability of all the individual cost elements.

Costs which are a component part of the product would normally be classified as variable costs since each component would require to be bought in specifically for that product. The cost of items bought for resale would also be classified as variable costs.

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Small business owners generally fall into two categories. There are the business owners that let their accounting tasks, invoicing, and payables pile up on their desk - or even in a shoe box, until they’re forced to face the music. Usually this happens around tax time.

The other sides of the coin are the business owner that are amazingly organized and know where every penny of their money is going. What do these business owners have that the rest of us don’t? More time? A PhD in accounting? Nope, chances are they have a system. To put it more simply, they’re organized. If you’re in the crowd of business owners that let it all pile up, there are a few things we can learn from the more organized folks. If we take just a few of the steps organized business owners take, not only will we save several days of excruciating paperwork, we will have a firmer grasp on our money.
Here are some recommendations for good bookkeeping practices:

#1: Record income and expenses on a regular basis. If you have a budget, recording this information is as easy as taking a few minutes each week or about an hour a month and recording your income and expenses on your budget. Your budget will have expense categories that reflect your business and which are broken into subcategories that make it easy for you to record. For the less organized, a simple system is to keep a file for your week’s receipts and payments. Using this method all you have to do is pull out your paperwork at the end of the week, add it up, record it, and you’re good to go. Literally 10-15 minutes of your time.

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