Proceso Contable (Ingles)

Erika Lucumi – Viviana Bueno - José Castrillón |

Café Mi Tierra’s Accounting Process

Content
Introduction 3
Objectives 4
Accounting 5
Accounting Process 7
The Profile accountant 9
Vocabulary accounting 10
Bibliography 15



Introduction

The objective of this is to make a presentation of the importance of the accounting cycle in the financial activities of Café Mi Tierra,from the very beginning of an accounting period until its completion. This work will allow you to obtain information that helps making decisions related to corporate planning, and the planning of new sales strategies

Objectives
* Provide a general knowledge of the necessary steps to the accounting of a company in each period, and how these lead to the final outcome of the same.
* Identifyeach of the books and records that interact in the accounting cycle.
* Classified records that should be used in each process of the accounting cycle
* Demonstrate the use of each of these records using a case study

Accounting

Accounting is a technical business function responsible for recording, reporting and analyzing financial information. Small business owners use accounting todetermine the profitability of operations. As small businesses continue to grow and expand, accounting processes and procedures may be needed to maintain the financial information. Accounting processes and procedures are usually based on the basic accounting cycle. The accounting process outlines how financial information flows through a company and which individuals are responsible theinformation.
Identify Transactions
Identifying transactions or other financial events is the beginning of the accounting cycle. Business owners use written documents to track specific information relating to financial transactions. These documents classify transactions and usually include specific information regarding economic events. Business owners also use this information to have a historicalrecord of business transactions. Once each transaction is identified and classified, the information is recorded in the general ledger.
Record Transactions
Recording transactions is the physical process of entering financial data into the general ledger. Small businesses may use manual or automated accounting ledgers in their business operations. Manual accounting requires business owners tomaintain several paper ledgers for recording financial transactions. Accounting software provides business owners with an electronic process for recording transactions and maintaining financial information. Recording transactions may require business owners to prepare journal entries based on financial transaction documents.
Prepare Reports and Statements
The final output of the accounting cycle isthe preparation of financial reports and statements. These reports and statements provide business owners with information regarding the efficiency and profitability of business operations. Business owners often use information to make decisions on improving operational performance. Business owners can also use this information to secure external financing for growing and expanding their company.Handling Procedures
Accounting procedures usually dictate which individuals are responsible for financial or accounting information. Smaller or home-based businesses do not usually require these procedures. Larger business organizations may employ several individuals to handle financial information and move it through the accounting cycle. Handling procedures outline who is responsible forgathering financial data and how the information will be entered into the general ledger.
Reconciliation Procedures
Reconciliation procedures ensure all financial information is properly recorded in a accounting ledger. Business owners may also require reconciliations when reviewing internal financial information against vendor invoices, bank statements or other external documents. Reconciliation...