What is the accounts?

account graphs are basically a list of different income categories and expenses related to the organization's funds. While the exact configuration of line items in the account chart may vary slightly from one entity to the other, there are several basic categories that you can find in almost every accounting book. Other categories may reflect the nature of the company carried out by organizations, such as charity funds set aside for specific purposes or assets that are reserved for the extended project associated with the company.

The main group of the categories located in accounts is not unlike those found in almost every household budget. These would be such line items such as rent or mortgage balance and payments, basic services and any ongoing debt that pays off every month, such as credit card balances. The exact order of these categories can be further defined by the establishment of series of line items or by monitoring access to the main book and includedIt runs some items in wide categories. For example, it may be useful to structure accounts, so line items of electricity, water and telephone services are grouped in the tool category rather than appear as separate categories.

, together with the basic categories contained in the account chart, there are often labels that are unique for a particular entity. Non -profit organizations can use line items that allow you to record fees for membership, revenue generated from the activities of raising funds or collections to be used for a specific project fund. For companies with accounts, it will always include receivables and obligations as part of the structure. There are often categories that allow proper monitoring of the allocated resources of the specific department or for general use by placing the company.

Many organizations decide to burnLiving a system of accounts that requires the creation of alpha and numeric designation for each category that is reflected in accounts. If sub -categories are subordinate in the main categories, it is usually taken into account when setting the sequence numbering used in books. These same designations also appear as line items in the balance sheet and in the statement of profit and losses for the organization. By following this process, it is very easy to exceed the reference transactions and ensure that the financial records remain properly balanced.