In accounting, recording is made up of the detailed documentation of financial transactions and events that a business engages in. These include:
- Transactions: Records of purchases, sales, expenses, and other financial activities.
- Journals: Where transactions are initially entered and categorized by division or department.
- General Ledgers: Summaries of all transaction groups organized by account.
- Source documents: Such as invoices, receipts, bank statements, contracts, and payroll records.
These components together create the basis for preparing financial statements, audits, tax filings, and financial analysis. Accounting recording typically follows the double-entry bookkeeping system where every transaction has corresponding debit and credit entries to keep accounts balanced.
