Bookkeeping Records
Bookkeeping Records
What documents and records are used to properly perform bookkeeping ?
The transaction is the starting point for any accounting record. Transactions are recorded in the bookkeeping records based on source documents.
Bookkeeping records are essential for businesses to be able to track their financial transactions accurately. There are several types of bookkeeping records that are commonly used to maintain financial records. These records help businesses keep track of their income, expenses, assets, liabilities, and equity. Here are some of the main types of bookkeeping records.
Common Bookkeeping Records:
Chart Of Accounts-A coded listing of all the accounts in the general ledger.
General Ledger-A book or computer file containing the accounts and balances for all of a business’s assets, liabilities, equity, revenue, and expense accounts.
Subsidiary Ledgers-A separate record set up to record the individual items relating to a single general ledger account (control account). Examples include inventory, accounts receivable, and accounts payable ledgers.
Journals-A preliminary record where business transactions are first entered into the accounting system. The journal is commonly referred to as the book of original entry.
Specialized Journals-Journals used to initially record special types of transactions such as sales, cash disbursements, and cash receipts in their own journal.
Trial Balance-A worksheet listing of all the accounts appearing in the general ledger with the dollar amount of the debit or credit balance of each. Used to make sure the books are “in balance” -total debits and credits are equal.
Fixed Asset Register-The fixed asset register maintains a record of all fixed assets owned by the business, such as property, equipment, and vehicles. It includes details such as acquisition cost, depreciation, and current value.
Worksheets-Forms which are used to summarize all the information necessary to complete the end-of-period financial reports and prepare other financial analysis.
Formal Financial Statements -The formal financial statements the balance sheet, income statement, and cash flow statement summarize and report the results from all the other accounting documents.
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