FAQ

What is a source document?

A source document is an original record (document) that contains the details of a transaction that substantiates the information entering into the accounting system.

 

What does it mean to reconcile accounts?

To reconcile an account means to compare two sets of records to ensure that they are accurate and in agreement.  One set of records is normally a bank statement.  This ensures that money leaving the account matches the amount of money that is spent.

 

What is a chart of accounts?

A chart of account is a financial tool that provides a complete list of every account in an accounting system.  Each account is the unique record for each type of asset, liability, equity, revenue, and expense.

 

What is an accounting system?

An accounting system is a system that collects, stores and processes financial and accounting data. It is generally a computer based system.