Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

Chapter 3

Using Journal Entries and Ledgers

IN THIS CHAPTER

Becoming familiar with journals

Understanding ledgers

Saving time and reducing errors with accounting software

Accounting involves a great deal of record keeping or booking — the process of recording accounting transactions. Some booking tasks involve basic data entry done by clerks. Junior accountants or bookkeepers may perform other booking tasks, such as preparing journal entries — the accountant’s way to enter transactions into the accounting system. (The accountant records any bank charges shown on the company’s monthly bank statement, for example.)

Whether you’ll need to book journal entries during your accounting career depends on a couple of factors. If you work for a small company in a one- or two-person accounting department, you could very well be the controller (the chief accounting officer for the business) and be doing the journal entries yourself. If, instead, you work for a large accounting firm that provides services to many clients, chances are that you won’t book journal entries yourself. But you’ll most certainly review journal entries while providing your services, such as when you audit a company’s ...