Tag: double entry system
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How to record a Transaction
Recording a transactions involves documenting all the financial activities of a business in a systematic way to ensure accuracy and compliance. Why Recording Transactions Matters Accurate transaction recording is essential because it: Key Elements of a Transaction Record Each recorded transaction includes the following details: Steps to Record Transactions 1. Identify the Transaction Determine the…
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What is the Accounting Process
The accounting process is a systematic way to record, organize, and analyze financial transactions of a business. These steps ensures accuracy in financial reporting and helps businesses make informed decisions. 1. Identifying Financial Transactions The first step in accounting is to identify transactions that need to be recorded. These could include: Only transactions that have…
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What is the Double Entry Accounting
Double entry accounting might sound fancy, but it’s just a way to keep your money records neat and balanced. It helps you see where your money is coming from and where it’s going. Let’s break it down so it’s super simple. What is Double Entry Accounting? Double-entry accounting means every time you record a money…