The accounting in a business

24 November 2008 - 17:42

The accounting consists of the process through what we registered, classified and summarized the different monetary transactions that they appear daily in a business, for then, on the basis of it, to make the Financial statements (mainly the Balance and Cuenta de Resultados).

The objective of the accounting is the one to register all the monetary transactions of the business or company, and to present/display this information of way ordinate to third parties, like:

• governmental organizations: at the time of declaring our taxes; in this case the accounting has obligatory character.
• partners or investors: when we want to convince them that they invest with us in our business.
• banks, financial organizations or moneylenders: when we want to convince them that they grant some credit to us or that to us money for our business gives.
• shareholders: when we want to show to them how he is developed financially our business.
• suppliers: when we want to convince them that they grant majors to us credits.
• consultants, advisers: when we want to show information to him that helps to be able to advise them or to advise to us to us better on our business.

But also accounting realizes with reasons internal, when we needed to count on information that allows us to realize a better financial situation analysis of the business and, on the basis of this analysis, power to make better decisions.

We see next a brief summary of the stages or steps necessary to take the accounting in a business:

1. Daily book

The process of the accounting begins with the registry of the monetary transactions of the business in Daily Libro. In this book they are registered or entering all the monetary transactions or operations that are realized in the business of chronological way, each operation is registered in a book entry, which is characterized to have one double entrance, in the left part (It must) we registered the destiny that occurs him to the resources coming from the monetary operation which we have realized, and in the right part (To have) we registered the origin of these.

2. Greater book

Secondly we happened to develop Greater Libro, where we registered the operations that we have registered in Daily Libro, but with the difference of which to each we registered it operation in the section that corresponds to him to each account, for example, all the operations corresponding to the account “clients” which we have entered in Daily Libro we grouped, them and we registered in the section corresponding to the account “clients” of Greater Libro.

3. The Balance

Thirdly we happened to elaborate the Balance, for it, we calculated the balances of the registered countable accounts in Libro Greater than they belong to the Balance, and the result of to these we registered them balances in the Balance, in the left column we will register the balances of the accounts of assets, and in the Column right, the balances of the accounts pertaining to the liabilities and the patrimony.

4. Cuenta de Resultados

And, finally, we made the State or Account of Results, for it, also we will go to Greater Libro and we will calculate the balances of the accounts of Income and Debits, and the result of these balances we will register, them in Cuenta de Resultados.

If you want to deepen in the subject of the accounting, we recommended to you to visit this practical introductory course, and if you want to deepen still more, we recommended this complete manual to you of accounting.

Labels: Concepts, Accounting

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Related contents:

1. The accounting of costs