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Accounting process

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The accounting is the discipline dedicated to collecting, interpreting and displaying information linked to heritage and to economic resources of an entity. To fulfill its purpose, experts in the field (called counters ) must develop a logical sequence of steps that are related to each other and that make up what is known as accounting process .

There are many studies and publications that establish the stages that should shape the aforementioned accounting process. Thus, for example, one determines that its phases are the following:
-Register the operations in the daily book.
-Use the ledger.
-To commit the check balance.
-To carry out what are the adjustments and the pertinent corrections that are necessary.
-Create the worksheet.
-Prepare financial statements.
-To commit the closing seats.

However, there are experts in the field who determine that the cycle itself consists of three distinct parts:
-The opening. As its name implies, it is the process in which the opening of the accounting books is carried out, either by the start of a business activity or by the continuation of the work of a company that has been operating a weather. In turn, two activities take place within this period: the inventory and the opening of accounting.
-Management. In this case, the stage is the one that takes place throughout the development of the annual financial year and during the same period, the accounting record of the different operations and the interpretation of these are undertaken.
-The conclusion. As you can imagine by their name, in this phase the accounts are adjusted, the necessary modifications are introduced and a synthesis is established, which is made available to all interested parties.

An accounting process begins with the opening a book or record . There you must detail the estate status of the organization in question, detailing its assets and obligations. This beginning of the accounting process can be realized at the moment when a company begins its activity or at the beginning of an accounting year.

During the accounting year, said book must collect all the economic operations of the company (material purchases, sales of products , payment of debts, etc.), together with the documents that guarantee each operation.

Finally, before the accounting process is closed, they can be performed settings or modifications that allow reaching a reliable balance at the end of the year. With the accounting process concluded, the financial statement of the company is available to those who have right of access to that information.

The closing of the accounting process always implies the annulment of credit accounts (income and benefits) and debit (expenses and losses). Accounting is closed once the various accounts of the company are already settled.

He account balance , in short, provides information on the equity and the results of the exercise of the company, data that are of great importance for shareholders and tax authorities.

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