The area where all financial information for a person or business is collected is referred to as a book of account. A ledger is a type of accounting book.
The two most common forms of accounting books are journal and ledger.
Collect the source papers that need to be logged, such as receipts or invoices. In the journal, keep track of the transactions in chronological order. Journal entries should be posted to the ledger accounts. Make sure the trial balance is ready. Make your financial statements.
There are five major account types: assets, liabilities, equity, revenue, and expenses.
Checking, savings, money market, CDs, IRAs, and brokerage accounts are all common account kinds.
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