{"id":768,"date":"2021-04-27T09:07:21","date_gmt":"2021-04-27T09:07:21","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/accounting-books\/"},"modified":"2021-04-27T09:07:21","modified_gmt":"2021-04-27T09:07:21","slug":"accounting-books","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/accounting-books\/","title":{"rendered":"Accounting books"},"content":{"rendered":"
\n

What are the accounting books?<\/h2>\n

The accounting books are files or documents<\/strong> in which the financial and economic information<\/strong> of a company. This covers all operations carried out during a certain period of time.<\/p>\n

In this way, its main function consists of keep accounting records<\/strong> in an orderly and chronological manner. In addition, they allow the extraction of specific financial information of the company, in order to know the balance sheet at any given moment or carry out procedures before the corresponding State entities.<\/p>\n

The accounting books must be submitted periodically to the corresponding commercial institutions for legalization and in most cases they must be kept for 6 years or more.<\/p>\n

Characteristics of the accounting books<\/h2>\n

The main characteristics of the accounting books are the following:<\/p>\n

    \n
  • They can be of character required<\/strong> or voluntary<\/strong>.<\/li>\n
  • Register accounting and financial information<\/strong> relevant.<\/li>\n
  • They are made up of annotations that are called accounting entries. These are done in chronological order.<\/li>\n
  • The information sits so systematic<\/strong>.<\/li>\n
  • Have legal character<\/strong>.<\/li>\n
  • Currently they can be carried on paper or digitally.<\/li>\n<\/ul>\n

    Types of accounting books<\/h2>\n

    According to their mandatory nature, the accounting books can be mandatory or voluntary.<\/p>\n

    Mandatory accounting books<\/h3>\n
      \n
    • Diary book<\/strong>: this records the different economic operations carried out by the company on a day-to-day basis. Each record must obey a strict and unequivocal chronological order. The data collected in this book are subsequently transferred to the largest, and are essential for the consequent completion of the financial statements at the end of the year.<\/li>\n
    • Inventory and balance book<\/strong>: This book opens with the company's detailed initial balance and inventory and should then be updated at least every quarter. To do this, the balances of sums and balances for the period are recorded. In addition, at the end of the fiscal year the balance sheet and final inventory, the income statement, the statement of changes in equity and the memory must be settled.<\/li>\n
    • Other mandatory accounting books<\/strong>: In addition to those already mentioned, you can find other equally mandatory books, such as the cash and bank book, the sales record book, the purchase record, the asset record, the minute book, among others. These may vary from one country to another, or apply only in some economic areas.<\/li>\n<\/ul>\n

      Voluntary accounting books<\/h3>\n
        \n
      • Ledger<\/strong>: this book reflects all the economic operations executed and recorded in the journal, throughout a fiscal year. In this way, it allows to know at all times the balance and registered operations. All the records posted in the journal go to the general ledger.<\/li>\n
      • Auxiliary books<\/strong>: these differ from the previous ones because they are optional and are used to the extent that the magnitude of the needs and the companies' policies demand it. In other words, they are alternative records that facilitate the financial management of the organization in question.<\/li>\n<\/ul>\n

        Importance of accounting books<\/h2>\n

        Accounting books play a essential role<\/strong> in the management of any organization, since its correct use enables timely financial decisions <\/strong>and carry out a structure in finances. Therefore, they are the foundation of a company's accounting.<\/p>\n

        On the other hand, accounting records are essential to determine the profitability of an organization <\/strong>because they allow you to measure the amount of money that comes in and goes out, and thus define the existing debts.<\/p>\n

        Finally, the accounting books gather in an orderly manner all the information regarding the financial situation of a company, so that favor decision-making<\/strong> successful and conducive to maintain stability and growth, and define those adjustments necessary to correct the course.<\/p>\n

        Example of ledger<\/h2>\n

        To better understand the concept of the accounting book, let us see as an example a Diary book<\/strong>:<\/p>\n\n\n\n\n\n\n\n\n
        Date<\/th>\nAccounts<\/th>\nShould<\/th>\nTo have<\/th>\n<\/tr>\n<\/thead>\n
        6th August<\/td>\nMaterials <\/p>\n

        VAT<\/p>\n

        \u2800\u2800\u2800\u2800\u2800<\/span>Checking account<\/p>\n<\/td>\n

        		$ 10000 <\/p>\n

        $ 2100<\/p>\n<\/p>\n<\/td>\n

        		\n

        $ 12100<\/p>\n<\/td>\n<\/tr>\n

        August 7th<\/td>\nRental expense <\/p>\n

        \u2800\u2800\u2800\u2800\u2800<\/span>Cash in banks<\/p>\n<\/td>\n

        		$ 120000 <\/p>\n<\/td>\n\n

        $ 120000<\/p>\n<\/td>\n<\/tr>\n

        August 8<\/td>\nOffice expenses <\/p>\n

        \u2800\u2800\u2800\u2800\u2800<\/span>Cash in banks<\/p>\n<\/td>\n

        		$ 7000 <\/p>\n<\/td>\n\n

        $ 7000<\/p>\n<\/td>\n<\/tr>\n

        August 11<\/td>\nCash in banks <\/p>\n

        Documents receivable<\/p>\n

        \u2800\u2800\u2800\u2800\u2800<\/span>Sales<\/p>\n<\/td>\n

        		$ 10000 <\/p>\n

        $ 7000<\/p>\n<\/p>\n<\/td>\n

        		\n

        $ 17000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n

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        What are the accounting books? The accounting books are files or documents…<\/p>\n","protected":false},"author":1,"featured_media":769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=768"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/769"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}