Beginner’s Guide to the 8-Step Accounting Cycle After you enter transactions into the journal, the next step is to post them to your general ledger. Posting occurs when these initial entries are transferred to the general ledger, which A Beginners Guide To The Accounting Cycle summarizes all business transactions using balanced debits and credits. The […]
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Each type has specific uses but all of them are considered books of original entry since they serve as initial records of transactions that enter into the accounting system. The general journal, also called the book of first entry, is a record of business transactions and events for a specific account. In other words, this
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For example, donations for a specific capital campaign shouldn’t be mixed with general operating funds. Regularly create reports, like the Statement of Activities, to keep track of each fund’s performance and ensure you’re meeting legal and donor requirements. This level of tracking is only possible with a system like fund accounting, which focuses on fund
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