Essay Example on Financial information is entered into the accounting System









Finance Department Financial information is entered into the accounting system so the company keeps safe all the necessary several types of information so as balanced sheets that summarizes the company's assets what it owns and owes and balance sheet reconciliation that give veracity to the report moving away from it any type of vices and giving clarity to the process As is a big company runs a lot of money through it and credit is part of it that's why credit checks are fully analyzed and carried by the finance operators so the company's credit history is benefiting further loans as the company frames a highly public record with any evictions reported bankruptcies tax liens or any judgements against it In accounting the monthly close is the processing of transactions journal entries and financial statements at the end of each month Under the accrual method of accounting it is imperative that the financial statements reflect only the transactions and journal entries having relevance to the current month s revenues and expenses and end of the month assets and liabilities 

Expressed another way the monthly close must achieve a proper cut off of each month s financial activities To ensure that the monthly financial statements are accurate and timely companies will use standard journal entries recurring journal entries and checklists for the tasks that must be completed If a company has inventories its monthly close will be more challenging as it will have to be certain that the costs are recorded in the same month as the goods are added to the inventories In short the accrual of expenses becomes immensely important when goods are received and are sold Another key step in the monthly close is to compare the amounts and percentages on the current financial statements to those of earlier months For example if the current income statement shows the cost of goods sold as 88 instead of the typical 81 the current month s amounts need to be reviewed before releasing the financial statements Often the comparison of the balance sheet amounts to those of earlier months will provide insight as to unusual amounts shown on the income statement Process Record daily operational financial transactions Reconciliation of accounting system modules subsidiary ledgers Record monthly journal entries Review of Revenue Expense Accounts Prepare Financial Statements Management review Close accounting systems for the month Entering Information its just to put the information into company system with The Source Documents General Journal General Ledger Trial Balance Source documents are the business forms that document all financial transactions of a business from buying a chair to selling a pencil Business forms include purchase orders receipts and invoices The actual specifics of business forms used by companies vary greatly Some companies require an unnecessary amount of paperwork to document a simple purchase order 

Others are too lenient allowing managers to order and pay for or sell items with too little accountability and little or no inventory adjustments It is important for all businesses to have an efficient and accountable system that documents all purchases sales and inventory Doing so requires the use of source documents that record any specific item s financial transaction for processing and bookkeeping Preparing Journal Entries All the accounting transactions must be first recorded in Journal The recording of transactions in the journal is called journal entry Preparation of journal entries involves certain steps that are explained below Analyze the transactions and identify the accounts that are affected by the transaction Ascertain the nature of the accounts involved as real personal or nominal Determine the rule of debit or credit applicable to each of the accounts involved Ascertain the account to be debited and the account to be credited Now write the date of transaction in the Date column Write the name of the account to be debited and the amount to be debited in debit amount column against the name of the account Write the name of the account to be credited in the next line preceded by the word To at a few spaces towards the right in particular column and the amount to be credited in the credit amount column against the name of the account Write narration brief description of the transaction within brackets in the next line in particular column

Online Live Tutor Preparation of Journal Entries We have the best tutors in finance in the industry Our tutors can break down a complex Preparation of Journal Entries problem into its sub parts and explain to you in detail how each step is performed This approach of breaking down a problem has been appreciated by majority of our students for learning Preparation of Journal Entries concepts You will get one to one personalized attention through our online tutoring which will make learning fun and easy Our tutors are highly qualified and hold advanced degrees Please do send us a request for Preparation of Journal Entries tutoring and experience the quality yourself Online Preparation of Journal Entries Help If you are stuck with a Preparation of Journal Entries Homework problem and need help we have excellent tutors who can provide you with Homework Help Our tutors who provide Preparation of Journal Entries help are highly qualified Our tutors have many years of industry experience and have had years of experience providing Preparation of Journal Entries Homework Help Please do send us the Preparation of Journal Entries problems on which you need Help and we will forward then to our tutors for review

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