Accounting records are key sources of
information and evidence used to prepare, verify and/or audit the
financial statements. They also include documentation to prove
asset ownership for creation of liabilities and proof of monetary and non monetary
transactions.
Accounting records can take on many forms and include (among other camps):
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Ledgers
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Journals
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Bank statements
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Contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to ...
s and agreements
*Verification statements
*Transportation
receipts
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Invoices
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Vouchers
Accounting documents or document records regroup every
document
A document is a written, drawn, presented, or memorialized representation of thought, often the manifestation of non-fictional, as well as fictional, content. The word originates from the Latin ''Documentum'', which denotes a "teaching" o ...
that plays a role in the preparation of
financial statements
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form which is easy to un ...
for a company, like income statements and balance sheets. They include records of monetary transactions, assets and liabilities, ledgers, journals, etc. Accounting documents and records are the physical objects upon which transactions are entered and summarized. Examples include such items as cancelled checks, paid bills, payrolls, subsidiary ledgers, bank reconciliations.
What is accounting documents?
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Accounting records can be in physical or electronic formats.
In some states, accounting bodies set rules on dealing with records from a presentation of financial statements or auditing
An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...
perspective. Rules vary in different countries and different industries have specific record-keeping requirements.
Accounting records are important for all types of accounting including financial accounting
Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions related to a business. This involves the preparation of financial statements available for public use. Stockholders, ...
, cost accounting
Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, al ...
as well as for different types of organizations corporations
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
, partnerships, LLCs, and for not for profits or for profits.
United States
In the U.S., the IRS prescribes the duration for which the accounting records need to be maintained and provides records retention guidelines in Code Section 6001 and Publication 583. Some records such as CPAs' and auditors' statements are considered permanent records, while some such as a list of accounts payable and employment applications are generally only required to be kept for seven or three years respectively.
India
The companies in the soda ash industry in India are required to follow guideline
prescribed by the Institute of Cost and Works Accountants of India (ICWA
References
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Accounting journals and ledgers
Accounting source documents