Building Blocks of a Bookkeeping System - dummies

Building Blocks of a Bookkeeping System

By Lita Epstein

Part of Bookkeeping For Dummies Cheat Sheet

Your bookkeeping system is built on a few key elements fundamental to keeping your books in order. With these building blocks, any bookkeeper can set up a solid system for tracking all the business’s transactions. Here are these important components:

  • Chart of Accounts: List of all accounts in the books; the road map of a business’s financial transactions

  • Journals: Place in the books where transactions are first entered

  • General Ledger: The book that summarizes all a business’s account transactions