Recordation is the recording of business transactions, consisting of several principle recurring transactions. This can include customer invoices, supplier invoices, customer receipts, and employee wages. Recordation is typically managed by an admin clerk, accounts payables clerk, cashier, and payroll clerk, respectively.
However, there are many non-recurring transactions that can take place which must be recorded. This is usually done through journal entries, noting them in the accounting records. Journal entries are usually used by fixed asset accountants, general ledger clerks, and tax accountants.
Over time, your business will accumulate a number of different accounts and accounting records, usually filled out by various different accountants. The general ledger contains all of these different types of accounts, each storing information about a particular type of transaction. This can include product sales, depreciation, accounts receivable, and debt. The general ledger is very important to keep up to date, as it is used to derive financial statements and data that can be useful for internal control reporting.
Account reporting covers a variety of different aspects, which are often divided into smaller areas of expertise. These include:
- Financial Accounting
Usually covered by the controller and chief financial officer, financial accounting is the recording and reporting of a company’s business transactions. Using the general ledger, which contains all financial statements, documents are presented based on a set of rules known as accounting frameworks. The most commonly used accounting frameworks are Accounting Principles (GAAP) and the International Financial Reporting Standard (IFRS).
- Management Accounting
Management accounting helps to provide an accurate picture of the way the business is running, and what changes need to be made. Cost accountants and financial analysts use the general ledger and the central system of accounts to help a business’ management in making both long and short term decisions about the operation of the company.
Are you or your team in need of accountancy training to help run your business smoothly? Hawkish Institute, a part of Hawkish Group, is here to provide you with practical training and problem solving solutions. Our accountancy training scheme doesn’t just allow you to run your own business, it also gives you experience and knowledge to find employment in the industry.
Contact Hawkish Group today to find out more about our range of different training schemes.