An accounting system is used to keep track of the income, expenses, assets, liabilities, and equity of a business. The business is Setup in a particular accounting Software such as Quickbooks, Peach Tree, Sage or any other type of accounting Software.
The Chart of Accounts is setup in the accounting system of the company to reflect The specific income, assets, liabilities and equity of the company. Some components of the chart of accounts are:
After the income and expenses are recorded in the General Ledger, a business can prepare a Financial Statement showing the profits or losses of the company. Once the assets, liabilities and equity have been recorded in the General Ledger, the business can prepare a financial statement called the Balance Sheet.
Accounting Software such as Quickbooks can be purchased through retail stores such as Staples and Office Depot. Other accounting software such as Sage and Peach Tree Can be purchased through 3rd Party resellers. Additional accounting software can be purchased through various other resources.
