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What are accounting records and what are their types ?

ما هي السجلات المحاسبية وماهي أنواعها - جودة الحسابات

Through this article, we will learn about the types of accounting records. We highlight the difference between accounting books and records, and we will also talk about the accounting records of the economist, and explain the concept of the double entry in accounting.

Accounting records are documents and records used to record and document the financial and accounting transactions of businesses and organizations. Accounting records are intended to document and track all financial transactions that occur within the organization, from small daily transactions to large and complex transactions.

The types of accounting records differ according to the accounting requirements and needs of each organization. Some of the common accounting records include journals, check books, accounts receivable and credit books, general and auxiliary books, revenue records, expense records, purchase records, etc. These types will be explored in more detail in the main headings of this article.

Since accounting records contribute significantly and effectively to achieving the quality of the accounts and improving the financial performance of the institutions, we will discuss the main differences between accounting books and records, and how to use them in the context of accounting. Although these two terms are sometimes used interchangeably, they actually have a contrast.

It will also explain the importance of accounting records to the economizer and how to track them. We explain the concept of double entry in accounting and its importance in ensuring the accuracy and reliability of financial accounts.

At the end of the article, you will have more information about accounting records and their different types, in addition to their impact on the quality of accounts and achieving financial success for organizations.

What are accounting records?

ما هي السجلات المحاسبية وماهي أنواعها - جودة الحسابات

Accounting records are documents and records used in accounting to record and document financial and business operations that take place within the framework of businesses or organizations.They may be used to analyze financial performance or as evidence in the case of an audit. In very short and simple terms, the accounting records are sufficient to show and explain the transactions of the organization.

The importance of accounting records

  • Accounting records are an essential tool for tracking and documenting financial movements and financial events related to the company, which contribute to achieving the quality of financial accounts.
  • Accounting records include recording financial transactions such as purchases, sales, cash, loans, salaries, general expenses, and many other operations.
  • Accounting records document all the minute details of each financial transaction, including dates, amounts, related accounts, and descriptions of the transaction.
  • Accounting records are used to prepare financial reports, tax returns, financial statements, and analyze financial data and make strategic decisions for the company.
  • Accounting records must be accurate, reliable, and properly structured to ensure the quality of financial accounts and compliance with approved accounting standards.
  • There are many types of accounting records that differ according to the accounting requirements of each company or organization, such as daily books, check books, accounts receivable and credit books, general and auxiliary books, and others.
  • Through the use of appropriate accounting records, companies are able to achieve the best financial management, accurate monitoring of financial operations, financial performance analysis, and strategic decision-making more accurately and effectively.

Thus, the interest in organizing and documenting the various accounting records enhances the transparency and financial credibility of companies, which contributes to the establishment of strong business relations with the concerned parties.

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Types of accounting records

1. General Journals:

  • Used to record daily financial transactions for the company.
  • Includes recording amounts due to the company, transfers between accounts, and other recordings. 

2. Cash Journals:

  • It is used to record all transactions related to incoming and outgoing checks.
  • Check details such as check number, beneficiary, amount, and date are recorded.

3. Ledgers:

  •  Used to record financial transactions for each debit or credit account.
  •  Contains transaction and stacking details related to each account.

4. General and Subsidiary Ledgers:

  • The general ledger is used to record the general financial transactions of the company.
  • The subsidiary ledgers are used to record the financial transactions of specific sub-accounts, such as receivable accounts and payable accounts.

5. Tax Records:

  • Tax records are used to record and document financial information related to taxes.
  • It includes tax returns, tax forms, and other documents required to comply with tax requirements.

6. Inventory Records:

  • Inventory records are used to record transactions related to inventory, such as purchases, sales, transfers, and balances.
  • It helps to track the quantities and financial value of products in inventory.

7. Expense and Revenue Records:

Used to record and document the daily expenses and revenues of the company.

The difference between books and  accounting records

ما هي السجلات المحاسبية وماهي أنواعها - جودة الحسابات

Here are the most important differences between books and accounting records:

  1. Definition: Accounting records are documents that record and document financial and business operations, while books are specific documents used to enter and record financial transactions.
  1. Scope and Comprehensiveness: Accounting records include all documents and records that are used to record financial transactions of various types. As for books, they refer to specific documents such as a  journal or checkbook.
  1. Detail and documentation: Accounting records contain comprehensive details of each financial transaction, including dates, financial numbers, linked accounts, and description of the process. As for books, they are more specialized and focus on a specific type of transaction.
  1. Usage and Organization: Accounting records are used to track and document all financial transactions accurately and comprehensively, while books are used to record certain types of financial transactions.

Accounting records are organized systematically and kept in a centralized accounting system, while books can be stored in paper or electronic form.

  1. Linking between books and records: Books are used to enter financial transactions initially, and then these transactions are transferred to accounting records to be documented, classified and aggregated with other related transactions.

Accounting records can be considered as the comprehensive framework that embraces books and contributes to ensuring the quality of financial accounts and documenting transactions in an accurate and systematic manner.

Accounting records of the economizer

The economizer is the person or entity that manages the financial and economic affairs of organizations, such as a local government or a public institution. Therefore, the accounting records of the economizer refer to the financial and commercial records that are used to record and document the financial operations that take place within the framework of the economizer.

The importance of accounting records for the economizer

 Accounting records play a crucial role in managing the economizer and ensuring the integrity of financial and economic accounts. Through accounting records, payments, revenues, expenses, and other dealings of the economizer are documented. This helps track financial performance and make informed decisions.

Types of accounting records for the economizer

The types of accounting records that can be used by the economizer vary according to the specific requirements and needs of each entity. These records may include journal books, checkbooks, ledgers, accounts receivable and credit books, and others.

Accuracy and reliability

  • The accounting records of the economist must be accurate and reliable in accordance with the approved accounting standards.
  •  These records must be clear and understandable and contain complete details of transactions, which contributes to the quality of financial accounts and related reports.

Uses and benefits

  • The accounting records of the economizer are used in the preparation of periodic financial, tax and financial reports.
  • These records help to monitor revenues and expenses and to manage finances more effectively.
  • It also contributes to analyzing financial performance and achieving economic and financial balance for the economizer.

In short, the accounting records of the economizer are an essential tool for managing financial and economic matters correctly and effectively, enhancing the accuracy of financial accounts, documenting financial transactions, and contributing to making strategic decisions based on reliable financial information.

What is a double entry in accounting?

ما هي السجلات المحاسبية وماهي أنواعها - جودة الحسابات

The double-entry register is an accounting method used in recording financial transactions and requires recording the impact of each transaction on a group of financial accounts, as the debit and credit sides of each account affected by this transaction are recorded.

The basic principle of the double register:

Double record is based on the principle of conservation of balance in the basic accounting equation, which states that “every debit transaction in a given account must be a credit transaction in another account or accounts, and vice versa.”

Importance and benefits:
  • Double entry provides integrated and comprehensive financial information on the company’s financial condition.
  • It assists in achieving accuracy and reliability in financial recording and allows for the determination of the balance of accounts and the verification of their correctness and balance.
  • It also facilitates the process of financial auditing and analyzing the financial performance of businesses.
Double entry applying

Double entry is implemented through the use of the debit and credit books of account to record the financial effects.

The debit side is recorded in the debit book and the credit side in the credit book. In this way, the flow of funds can be followed and all financial transactions are documented accurately.

Linking the double entry with other accounting records

The dual entry is used to record financial transactions in various accounting books such as journal books, checks, accounts receivable and credit, this helps to ensure consistency and accuracy of financial recording and documentation of operations.

By using a double entry in accounting,  businesses and companies can keep their financial accounts balanced and accurately track all financial transactions, which contributes to accurate financial reporting and informed decision-making based on reliable financial information.

In conclusion, it can be said that accounting records are an essential and indispensable tool in the process of accounting and financial management in any organization or company. Accounting records contribute to documenting and recording all financial transactions that take place in an organization and provide an important source of financial and administrative information.

By using appropriate accounting records and adhering to the double entry in accounting, organizations can achieve better financial accounts, providing reliable information for strategic decision-making and financial analysis.

We hope that the Accounts Quality Company has provided you with useful information about the best types of accounting records, and their importance in achieving the quality of financial accounts.

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