Accounting Records
Accounting is the system within a business for converting raw data from source documents, like invoices, sales receipts, bills, and checks, into information which will help a manager make business decisions. Accounting systems funnel piles of data into usable information by recording every transaction that occurs in your business ins journals, then transferring or posting them into ledgers. ... The last step in the accounting process is to take certain numbers from your financial statements to compute key ratios which can be compared to industry averages or historical figures from your business to help you make financial decisions. Double-entry accounting systems resolve around three elements - assets, liabilities and owner’s equity. ... With this kind of accounting system all transactions are recorded in two ways – once as a debit to one account and again as a credit to another account.