Which Transactions Are Recorded In The Accounting System. One of the important activities that must be carried out by companies is recording financial transactions . The recording of transactions is the basis of the accounting process .Without recording the financial transactions that have been made, you cannot make financial statements.
Which Transactions Are Recorded In The Accounting System.
In general, any financial transaction that occurs in a business is recorded in the accounting system. This includes:
- Sales transactions: recording the sale of goods or services to customers, including invoices and receipts.
- Purchase transactions: recording purchases of goods or services from suppliers, including invoices and payments.
- Payroll transactions: recording payments to employees for wages, salaries, and benefits.
- Expense transactions: recording expenses incurred by the business, such as rent, utilities, and supplies.
- Cash transactions: recording cash inflows and outflows, including receipts, payments, and bank transfers.
- Asset transactions: recording the purchase, sale, and depreciation of fixed assets, such as property, plant, and equipment.
- Equity transactions: recording transactions related to the issuance, repurchase, or retirement of stock or other equity instruments.
- Liabilities transactions: recording transactions related to the borrowing or repayment of loans or other debts.
Overall, any financial activity that affects the company’s financial position, performance, or cash flow should be recorded in the accounting system.
Making Financial Transaction Reports
If all the steps above have been carried out properly and correctly, then you can arrange the financial statements neatly.You just have to write neatly and follow the rules or applicable financial reporting standards, such as income statements , statements of changes in capital , balance sheets and cash flow statements .
