Most people might think of bookkeeping and bookkeeping as the same thing, but bookkeeping is actually one of the functions of accounting, while accounting includes many functions involved in managing a company’s financial affairs. Accountants prepare reports based, in part, on the accountant’s work.
Accountants perform all kinds of record keeping activities. Some of them are as follows:
-Prepare so-called source documents for all business operations: purchases, sales, transfers, payments and billing. These documents include letters such as purchase orders, invoices, credit card receipts, tags, time sheets, and expense reports. Accounting also determines and includes in the source documents the so-called financial effects of transactions and other business events. This includes paying employees, making sales, borrowing money, or purchasing products or raw materials for manufacturing.
Accountants also make records of financial securities in newspapers and accounts. These are two different things. A journal is a record of transactions in chronological order. Accounts are separate records, or pages, for each asset and each liability. A transaction can affect multiple accounts.
Accountants prepare reports at the end of a certain period of time, such as daily, weekly, monthly, quarterly or yearly. To do this, all accounts must be updated. Inventory records should be updated and reports checked and double-checked to ensure they are as error-free as possible.
– Accountants also compile a complete list of all accounts. This is called an adjusted trial balance. While a small business may have a hundred or more accounts, a very large business may have more than 10,000 accounts.
-The final step is for the accountant to close the books, which means closing all the books for a fiscal year and summarizing.