Accounting Tools

OCTOBER 26, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Control Account? A control account is a summary-level account in the general ledger. This account contains aggregated totals for transactions that are individually stored in subsidiary-level ledger accounts.

General Ledger 40

General Ledger Accounting Accounting Accounts Payable 40

Accounting Tools

JUNE 7, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Account? An account can have several meanings in the accounting profession. Account Record An account can be the record in a system of accounting in which a business records debits and credits as evidence of accounting transactions.

General Ledger 75

General Ledger Accounting Accounting Accruals 75

Accounting Tools

JUNE 12, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Subsidiary Ledger? A subsidiary ledger stores the details for a general ledger control account. Types of Subsidiary Ledgers A subsidiary ledger can be set up for virtually any general ledger account.

General Ledger 75

General Ledger Bookkeeping Financial Statements Accounts Payable 75

Accounting Tools

DECEMBER 20, 2023

What is an Accounting Entry? An accounting entry is a formal record that documents a transaction. In most cases, an accounting entry is made using the double entry bookkeeping system , which requires one to make both a debit and credit entry, and which eventually leads to the creation of a complete set of financial statements.

Accounting 75

Accounting Accounting General Ledger Accruals 75

Accounting Tools

SEPTEMBER 28, 2023

Related Courses Payables Management What is the Accounts Payable Ledger? An accounts payable ledger contains the detail for all invoices received from suppliers. The ledger tracks the specific payable information for each invoice, which includes the invoice number, invoice date, supplier name, and amount paid.

Accounts Payable 40

Accounts Payable Accounts Payable General Ledger Accounting 40

Accounting Tools

MAY 3, 2024

Its main purpose is to remove a source of high-volume transactions from the general ledger , thereby streamlining it. The transaction number, account number, customer name, invoice number, and sales amount are typically stored in the sales journal for each sale transaction.

General Ledger 40

General Ledger Invoicing Bookkeeping Accounts Receivable 40

Accounting Tools

MARCH 11, 2024

What is an Accounting Worksheet? An accounting worksheet is a document used within the accounting department to analyze and model account balances. A worksheet is useful for ensuring that accounting entries are derived correctly. If the outcome is correct, the entries are then input into the general ledger.

General Ledger 40

General Ledger Account Reconciliation Accounting Accounting 40

Accounting Tools

JANUARY 18, 2024

What is a Journal in Accounting? The general journal is used to record more general, lower-volume transactions. Once entered into a journal, transactions are then posted to general ledger accounts. Entries made into a journal employ double-entry accounting , where balancing debits and credits are used.

General Ledger 40

General Ledger Accounting Accounting Bookkeeping 40

Accounting Tools

OCTOBER 4, 2023

This journal is most commonly found in a manual accounting system , where it is necessary to keep high-volume purchasing transactions from overwhelming the general ledger. For example, the debit relating to a purchase of office supplies would be to the supplies expense account.

General Ledger 75

General Ledger Purchase Order Accounts Payable Accounts Payable 75

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Transaction? A transaction is a business event that has a monetary impact on an entity's financial statements , and is recorded as an entry in its accounting records.

General Ledger 75

General Ledger Accruals Financial Statements Bookkeeping 75

Accounting Tools

MAY 2, 2024

Special journals are all accounting journals except for the general journal. These journals are used to record specific types of high-volume information that would otherwise be recorded in and overwhelm the general ledger. This is a subsidiary ledger in which cash sales are recorded. What are Special Journals?

General Ledger 40

General Ledger Payroll Bookkeeping Accounting 40

Accounting Tools

AUGUST 4, 2023

What is an Expense Account? Expense accounts store information about different types of expenditures in an organization’s accounting records. The phrase most commonly refers to travel and entertainment expenses, and also applies to a type of account. Both definitions are noted below.

General Ledger 40

General Ledger Accounting Accounting Expense Reports 40

Accounting Tools

JULY 25, 2023

Journalizing is the process of recording a business transaction in the accounting records. Journalizing can result in entries to the general ledger or to subsidiary ledgers. Ideally, the entry should note the impacted accounts, the debits and credits entered, a journal entry number, and a narrative comment.

General Ledger 75

General Ledger Accounts Payable Accounts Payable Bookkeeping 75

Accounting Tools

MARCH 8, 2024

What is a Contra Inventory Account? A contra inventory account is a general ledger account that is paired with the inventory account, and which contains a negative balance that represents a reserve for obsolete or damaged goods. It is also useful when inventory is quite old or turnover levels are low.

General Ledger 40

General Ledger Accounting Accounting Financial Statements 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Bookkeeping Guidebook Purchasing Guidebook What is a Purchase Ledger? The purchase ledger is a subledger in which purchases are recorded. The purchase ledger is part of the accounting department's database; it is not maintained by the purchasing department.

General Ledger 67

General Ledger Accounts Payable Accounts Payable Purchase Order 67

Accounting Tools

FEBRUARY 15, 2024

What is a Liability Account? A liability account is used to store all legally binding obligations payable to a third party. Liability accounts appear in a firm’s general ledger , and are aggregated into the liability line items on its balance sheet. Conversely, a debit reduces the balance of a liability account.

General Ledger 40

General Ledger Accounting Accounting Deposits 40

Accounting Tools

JULY 8, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook The Balance Sheet What are Contra Accounts? A contra account offsets the balance in another, related account with which it is paired. Contra accounts appear in the financial statements directly below their paired accounts.

Accounting 75

Accounting Accounting General Ledger Accounts Receivable 75

Accounting Tools

APRIL 8, 2024

For example, the initial funding of a petty cash box is $300, and this amount is recorded in the corresponding general ledger account for petty cash. This amount does not change in the general ledger, even though the amount of cash in the petty cash box will gradually decline as it is paid out and replaced with receipts.

Petty cash 40

Petty cash General Ledger Bookkeeping Auditing 40

Accounting Tools

SEPTEMBER 27, 2023

What is an Accounting Entity? An accounting entity is a business for which a separate set of accounting records is maintained. The accounting entity concept is used to establish the ownership of assets and obligation for liabilities , as well as to determine the profitability of a specific set of economic activities.

General Ledger 40

General Ledger Accounting Accounting Financial Statements 40

Accounting Tools

JUNE 8, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Accounting Cycle? The accounting cycle is the actions taken to identify and record an entity's transactions. The accounting cycle for individual transactions is noted below.

General Ledger 75

General Ledger Financial Statements Accounting Accounting 75

Accounting Tools

FEBRUARY 3, 2024

A cash receipts journal is a subsidiary ledger in which cash sales are recorded. This journal is used to offload transaction volume from the general ledger , where it might otherwise clutter up the general ledger. The cash receipts journal is most commonly found in manual accounting systems.

General Ledger 40

General Ledger Bookkeeping Accounting Software Accounts Receivable 40

Accounting Tools

APRIL 11, 2024

Tracing is the process of following a transaction in the accounting records back to the source document. Her intent is to trace the purchased amount stated in the client’s general ledger back to the amount billed by the supplier.

General Ledger 40

General Ledger Purchase Order Auditing Billing 40

Accounting Tools

MARCH 8, 2024

What is an Accounting Information System? An accounting information system is one that accumulates, stores, and processes financial and accounting information. The system generates reports that are used to make decisions regarding how an organization is to be run.

General Ledger 40

General Ledger Accounting Accounting Accounts Payable 40

Accounting Tools

JULY 13, 2023

The unadjusted trial balance is the listing of general ledger account balances at the end of a reporting period, before any adjusting entries are made to the balances to create financial statements. The unadjusted trial balance is used as the starting point for analyzing account balances and making adjusting entries.

General Ledger 74

General Ledger Financial Statements Accruals Bookkeeping 74

Accounting Tools

MAY 11, 2023

Related Courses Records Management What are Accounting Records? Accounting records are the original source documents , journal entries , and ledgers that describe the accounting transactions of a business. Accounting records support the production of financial statements.

General Ledger 40

General Ledger Financial Statements Accounting Accounting 40

Accounting Tools

APRIL 25, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Clearing Account? A clearing account is a general ledger account that is used to temporarily aggregate the amounts being transferred from other temporary accounts.

General Ledger 40

General Ledger Accounting Accounting Bookkeeping 40

Accounting Tools

MARCH 24, 2023

Related Courses Bookkeeping Guidebook Credit and Collection Guidebook How to Audit Receivables What is the Accounts Receivable Ledger? The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables General Ledger 40

Accounting Tools

OCTOBER 3, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the Purchases Account? The purchases account is a general ledger account in which is recorded the inventory purchases of a business.

General Ledger 40

General Ledger Accounting Accounting Auditing 40

Accounting Tools

MAY 21, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Journal Entry? A journal entry is used to record a business transaction in the accounting records of a business. The general ledger is then used to create financial statements for the business.

General Ledger 75

General Ledger Financial Statements Accruals Payroll 75

Accounting Tools

AUGUST 6, 2023

Year-end adjustments are journal entries made to various general ledger accounts at the end of the fiscal year , to create a set of books that is in compliance with the applicable accounting framework. Adjustments to general ledger accounts that have been reconciled as part of the closing process.

General Ledger 75

General Ledger Accruals Billing Reconciling 75

Accounting Tools

JUNE 19, 2023

A post-closing trial balance is a listing of all balance sheet accounts containing non-zero balances at the end of a reporting period. If any revenue, expense, gain, loss, or summary account balances appear in the trial balance subsequent to the closing process, it is because they are associated with the next accounting period.

General Ledger 75

General Ledger Computation Accounts Payable Accounts Payable 75

Future Firm

NOVEMBER 9, 2022

This is my complete guide to accounting automation in 2023. So if you want to: Learn the 8 benefits of automated accounting. Save time by automating your accounting processes. Automate all 15 areas of your accounting. What is Accounting Automation? Will Automated Accounting Replace You? Let’s get started.

Accounting 98

Accounting Accounting Accounts Payable Accounts Payable 98

Nanonets

MARCH 15, 2024

Today, Large Language Models (LLMs) can claim to pass the CPA exam, but are they really ready to take over the accounting world? Artificial intelligence is now being applied across professional domains that are ripe for automation - areas of work such as software, law, accounting, consulting, finance and so on.

Data Entry 59

Data Entry Accounting Accounting General Ledger 59

Accounting Tools

MARCH 28, 2024

A lawsuit payable is a general ledger account that contains the amount owed to the opposing party in a lawsuit. Liabilities are only recorded in this account if the amount to be paid is both probable and can be estimated. If this is not the case, then the account is instead classified as a long-term liability.

General Ledger 40

General Ledger Financial Statements Accounting Accounting 40

Accounting Tools

MARCH 28, 2024

Balance per books is the ending balance of an account that appears in the general ledger. Balance per Books vs. Bank Balance The balance per books is the ending balance in the accounting records of an organization, while the bank balance is the ending cash balance in an organization’s bank account, according to its bank.

Bank Reconciliation 40

Bank Reconciliation General Ledger Deposits Auditing 40

Accounting Tools

JUNE 12, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are Books of Original Entry? Books of original entry refers to the accounting journals in which business transactions are initially recorded. This concept only applies to manual record keeping.

General Ledger 40

General Ledger Record Keeping Reconciling Financial Statements 40

Accounting Tools

SEPTEMBER 19, 2023

Related Courses Cost Accounting Fundamentals What is Original Cost? Original cost is the cost at which an asset is recorded in the general ledger. Original cost is the cost at which an asset is recorded in the general ledger. Original cost is the price paid to initially acquire an asset.

General Ledger 40

General Ledger Cost Accounting Tax Accounting 40