The comceptual basis of accounting
· One min read
The accounting process :
┌────────────────────┐
│ Source Documents │
│ (invoices, bills, │
│ receipts, bank stm│
└─────────┬──────────┘
│ record + validate
▼
┌────────────────────┐
│ Journals │
│ (transactions with │
│ debit/credit lines│
└─────────┬──────────┘
│ post
▼
┌────────────────────┐
│ Ledgers │
│ (GL + sub-ledgers, │
│ accounts updated) │
└─────────┬──────────┘
│ summarize balances
▼
┌────────────────────┐
│ Trial Balance │
│ (list of account │
│ balances) │
└─────────┬──────────┘
│ year-end / period-end
│ adjustments
▼
┌─────────────────────────────┐
│ Balance-day Adjustments │
│ (accruals, prepayments, │
│ depreciation, provisions, │
│ inventory/COGS, corrections│
│ tax adjustments, etc.) │
└─────────┬───────────────────┘
│ adjusted balances
▼
┌─────────────────────┐
│ Financial Statements│
│ P&L, Balance Sheet, │
│ Cash Flow, Notes │
└─────────┬───────────┘
│ file + retain evidence
▼
┌─────────────────────────────┐
│ Storage of Source Documents │
│ & Accounting Records │
│ (audit trail, compliance) │
└─────────┬───────────────────┘
│ use outputs for insight
▼
┌────────────────────┐
│ Analysis │
│ (ratios, trends, │
│ variance, KPI) │
└─────────┬──────────┘
│ explain meaning
▼
┌─────────────────────┐
│ Interpretation │
│ (what it implies, │
│ risks/opportunities)│
└─────────┬───────────┘
│ act
▼
┌────────────────────┐
│ Decision Making │
│ (pricing, cost, │
│ investment, cash, │
│ strategy) │
└────────────────────┘
- operating lines vs control/settlement lines, base source type, how to genarate control/settlement lines.
- when use tracking categories , when use account code ?
- understand '很多控制与对账都是在 ledger 级别做的'
understand stpes :
- 过账到总账（post to ledger）
- 查总账明细（ledger details）
- 再出试算表（trial balance）