Financial accounts are the backbone of any organization. Without effective maintaining of financial accounts no organization cannot plan or foreseen the future prospect of the company it relates. For the effective functioning of an organization proper maintenance of financial accounts is essential.
Following are some of the important financial accounting records that needs to be maintained essentially by any organization.
Cash Book: Cashbook is the one of the essential accounting record for recording all financial receipts and payments. All payments from the organization needs to be entered and maintained through cashbook. All receipts to the organization or business needs to be entered and maintained through receipts cashbook.
General Ledger: General ledger is another important accounting record which has to be maintained for posting all payments and receipts of the financial transactions. General ledger will consist of folios and each folio represents a particular head of account. All payments and receipts accounting transactions have to be posted head of account wise.
Bank Reconciliation and Bank Control Account: Bank reconciliation is an important and essential accounting function in any organization. All the payment accounting transactions and receipt accounting transactions needs to be reconciled with the bank accounts and the bank closing balance should agree with the departmental accounting closing balances.
