The chronological accounting is to record all transactions by the company, that is to say, the movements relating to its heritage. These operations are represented by accounting documents or records, and are entered in the books called order book. Next, we report the data stored in other documents by distributing new operations, not by date of execution, but by their nature. And finally, it summarizes all the operations in documents called annual financial statements. Let’s see one by one the various documents mentioned above in order to differentiate the accounting work daily and periodic accounting work.

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Accounting records or accounting documents

The accounting records are the documents from customers, suppliers and other third parties (banks, etc.) They materialize commodity trading (purchase orders, invoices, delivery notes), operations on services consumed (invoices, payment, ) and cash flows (bank checks, money orders, negotiable instruments,).

The order book

The order books are books recording transactions of this nature. We distinguish the book of orders sent to suppliers, purchasing the book and the book of orders received from customers. The order book for the vendor mentions details of materials and supplies required by the company, the frequency of delivery agreed on the terms of payments, etc. The book records all purchase invoices received by the company as a result of transactions made by it with third parties (suppliers of goods, service providers, etc.) The book of orders received from customers includes the organization of controls to regulate the company: delivery date, list of items, quantity and unit, the method of payment, the payment period, etc.

The books

The main books are the paper, the general ledger and the book inventory. The journal is a book record-keeping at the time of its completion, that is to say from day to day. The general ledger is a collection of sheets of company accounts. The book inventory transcribed documents annual summary is to say, the financial statements. The financial statements required for any company is the balance sheet, income statement and the schedule. The balance sheet summarizes the assets of the company at some point, while the income statement reflects the range in value from their usual activities. And the schedule is a comment area of ​​the information displayed by the balance sheet and income statement.

The use of software in the bookkeeping

Today, most companies provide their accounting through specialized software. There are several models to choose from depending on the business of the firm, the types of information that managers want to highlight, and the jurisdiction of the responsibility for keeping the accounts. Some companies are content with minor use of current design software such as Excel spreadsheets, while other, larger size, can not handle the recording and summarizing transactions only through software the most complex accounting: SKY, Saar, etc. For a simplified view of the use of computer programs.

we developed the following basic principle: we grasp the purchase invoices, sales invoices, statements of charges, parts and banking operations in their various respective location provided in the software. In addition, cash inflows and outflows will be recorded in the cash journal. Then, prepare the accounts of third parties by automatic matching or manual. Then we develop the general ledger in order to ventilate the accounts and checked the balance of payments to balances out. The last tasks to be performed are correct account numbers, the claim invoices or accounting documents missing, etc And the establishment of the bank reconciliation in the paper bank.