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Accounting Fundamentals: Bookkeepers, Accountants, Double Entry, Closing Books

Explore the essentials of accounting with this concise guide. Learn the distinctions between bookkeepers and accountants, understand the principles of the double entry system, and uncover the significance of closing books at the end of accounting periods

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Accounting Fundamentals: Bookkeepers, Accountants, Double Entry, Closing Books

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  1. UNDERSTANDING ACCOUNTING BASICS DIFFERENTIATING BETWEEN BOOKKEEPERS AND ACCOUNTANTS, DOUBLE ENTRY SYSTEM, AND UNVEILING THE MEANING OF CLOSING BOOKS. www.corient.co.uk

  2. Roles of Bookkeepers and Accountants: Bookkeepers primarily focus on recording financial transactions, maintaining ledgers, and ensuring the accuracy of financial records. Their tasks often include recording sales, purchases, and expenses, reconciling bank statements, and generating basic financial reports. Conversely, accountants adopt a broader and more analytical approach to financial management. They interpret financial data, analyze trends, prepare financial statements, and offer insights and recommendations to assist businesses in making informed decisions. Accountants also play pivotal roles in tax planning, auditing, and ensuring compliance with financial regulations. So, here is the difference between Bookkeepers and Accountants. www.corientbs.co.uk

  3. The Double Entry System: Next, let’s delve into the double entry system, a foundational concept in accounting that guarantees accuracy and integrity in financial records. The double entry system operates on the principle that each financial transaction has two equal and opposite effects, known as debit and credit. Under this system, every transaction is recorded in at least two accounts: one account is debited, representing the increase or decrease in assets or expenses, while another account is credited, representing the corresponding decrease or increase in liabilities or equity. By adhering to this systematic approach, the double entry system facilitates maintaining the balance of the accounting equation: Assets = Liabilities + Equity. www.corientbs.co.uk

  4. The Concept of The Closing Books: Closing Revenue and Expenses Preparing Adjusting Entries Temporary accounts such as revenue and expense accounts are closed by transferring their balances to the income statement or retained earnings resetting them to accounting period. Adjusting entries are made to ensure that all revenues and expenses are recorded in the appropriate matching revenues with expenses incurred to generate them. 01 02 accounting period, account, zero effectively the for next www.corientbs.co.uk

  5. Contact Us +44 24 7610 3333 info@corientbs.co.uk https://corientbs.co.uk/ The Techno Centre, Puma Way, Coventry, CV1 2TT, United Kingdom

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