What Are Accounting Records
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ScribdTranslationsWhat Are Accounting Records
Uploaded by
ScribdTranslationsWhat are accounting records?
The accounting records, also known as commercial books or ledger of
accounting, are the physical documents of all operations within a
company.
These records reflect all accounting movements of the economic entity.
(company) with the aim of providing its financial information. There
two accounts are involved, on one hand, the expense that is recorded when it increases
for the 'Debit', and on the other hand the asset that when it decreases is recorded by the
News.
An example of one of the most used accounting records is the cash book.
Important: It is essential to keep a detailed record of the movements.
financial activities that are carried out within the company, as this is where the
financial and economic situation to make important decisions within the
same.
Types of accounting records:
1. Mandatory or essential records:
As the name suggests, they are the mandatory books that are legally required.
The diary book: It records all the operations that the company
recorded day by day, these records are called entries and are made in
chronological order, as indicated by the Commercial Code in ART. 45
It expresses that the book Diary is based day by day as they go.
operations carried out.
The Inventory and Balance Book: Here everything is recorded from the beginning until the end.
end of the asset details.
2. Non-mandatory records:
These types of books are not required by law, but are the ones that the company creates.
necessary to have depending on each activity carried out in the company.
Cash flow statement: It is the record of cash inflows and outflows.
in cash from the company.
Income statement: This book records all the income from
businesses and expense transactions with the aim of measuring the
business profitability. It differs from the previous one because in these it
record the status of work that clients have not paid for and expenses
accumulated without being paid yet.
Balance: There goes the record of the company's assets and liabilities.
Important data of an accounting record:
Date of the annotation
Number of the annotation during the financial year.
Intervening accounts: code and name.
Amounts recorded to each account (whether they are charges or bonuses).
Description of the operation.
Benefits of maintaining an accounting record:
To have a detailed record of the company's assets.
Control the cash flow taking into account the needs of the
company.
Support of financial movements before third parties.
Register the financial responsibilities of the company.
Control the economic status of the entity.
Important data: The information recorded in the accounting books is for use
both for the company and for the State, as this data is analyzed by
they to determine if the private entity complies with the legislation.
How to keep accounting records?
There are several options for keeping this type of record among which
they are: with the help of an accountant, who is the expert in accounting matters; another
the way to do it is through specialized software to carry the
business management and accounting.
In Siigo, you will be able to do both ways, you will be able to have your software with the part
accountable and do it yourself or if you prefer the help of an accountant you will be able to
synchronize all your information with theirs allowing you to obtain balances in
real time