A complete record of every financial transaction throughout the life of the company, categorized by account.
Original records like invoices, receipts, and bank statements that provide evidence of transactions. 2. Types of Accounting Systems accounting system
An effective system relies on several foundational elements: A complete record of every financial transaction throughout
Every system tracks five core categories— Assets (what you own), Liabilities (what you owe), Equity (owner's worth), Revenue (income), and Expenses (costs). Liabilities (what you owe)
An organized list of all account titles used to categorize every financial transaction.