Accounting System

Accounting transactions in the form of sales invoices, receipts, purchase invoices, checks, and payroll entries are posted to the appropriate journals. Simultaneously — as a form of internal control — these postings are recorded in the general ledger, or “GL”. The GL accumulates all transaction activity, where it is organized by account class. Various reports, including financial statements, can be prepared from the data collected in the GL. Corrections or necessary adjustments can be made to the general ledger by creating adjusting journal entries, posted to the general journal.