Basic Steps To Accounting

When it comes to accounting, here are some basic steps that one need to understand in this scope. Let me list out some of the following:-

Financial Accounting - It is the basic introduction to financial accounting. It defines financial accounting, compares to managerial accounting, lists underlying assumptions and provides an example of recording transactions.

Underlying Assumptions and Principles is a description of the basic financial accounting assumptions, principles and modifying conventions.

Single Entry Bookkeeping describes the simple single-entry bookkeeping system and why it is inadequate for many organizations.

Double Entry Bookkeeping is the introduction to the double entry system that is the foundation of modern accounting.

These are a few of the basic steps in accounting and there are a few more topics. Accounting is an interesting course to undertake if one is interested in figures and numbers. It is one of the most challenging course and career as well. This is my opinion... :)

The Accounting Equation
The fundamental accounting equation and an example showing how it remains in balance after each transaction.

The Accounting Cycle
The steps of the accounting cycle, from the initial transaction to preparation of the financial statements and closing entries.

The Source Document
The purpose of the source document, examples of source documents, and their role in the accounting cycle.

Journal Entries
The basics of the general journal and journal entries and the role of special journals.

The General Ledger
The purpose of the general ledger and how to post transactions to the ledger accounts.

Debits and Credits
An introduction to debits and credits and how to avoid confusing them.

The Trial Balance
How to calculate the trial balance and use it to identify errors in the accounting process.

Adjusting Entries
Types of adjusting entries and how to make them.

Closing Entries
The role of closing entries in the accounting process and the procedure for making them.

The Financial Statements
An introduction to the balance sheet, income statement, statement of retained earnings, and cash flow statement.

Accounting Standards
A short description of financial accounting standards groups and authoritative bodies, including FASB, its predecessors, and other accounting standards groups.

The Balanced Scorecard
The Balanced Scorecard is a relatively new management accounting system that includes financial and non-financial performance measures. This article introduces the Balanced Scorecard and describes each of its four measurement perspectives.