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This Is The Process Of Accounting

For learning knowledge, of course, we must understand the process of that knowledge. Also included in the accounting. It is also very important to know and understand what accounting is. In general, accounting means a process of recording, classifying, summarizing, processing, and presenting data, transactions, and events related to finance so that it can be used by people who are easily understood for decision making and other purposes. However, if you don’t have the time to do it yourself, we recommend you hire the best Accountant to help your business.

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Accounting is a complex process in finance that occurs in a business or organization. The accounting process consists of:

Recording

The recording is an important process in accounting activities. Said to be important because the recording is an activity of documentation or recording transactions in a certain period. The recording process is also better known as the bookkeeping process because it includes the process of analyzing transactions and entering them as notes.

In accounting itself, bookkeeping usually consists of many types according to the needs and interests of recording in more detail.

Summarize and Classify

Usually, in recording transactions, the data presented are still in the form of raw data. This is where the duty of an accountant to summarize and classify data into several categories and translate the data into important data that can be taken into consideration.

Reporting

An accountant must also present data on the accounting process and all transactions in the financial statements that will be submitted to management for consideration in decision making. Financial reports are submitted monthly, quarterly, or annually.

Analyze

After accounting, classification, and also preparing financial statements, an accountant must also analyze the accounting process.

An accountant will conduct an analysis based on a comparison of earnings, sales, equity, and so on to determine and analyze the performance of an organization or company and also as a material for consideration in making strategic corporate decisions.

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