Are you thinking of becoming an accountant or hiring one? Learn a few facts about general accounting and what it entails.
Financial accounts and matters can be encountered almost everywhere. From homes and families to businesses and corporations, managing financial accounts of some sort are required and necessary. Matters ranging from personal savings accounts, business checking accounts or bills for services that were performed must be taken into consideration in order to assess how all these financial activities affect the bottom line. General accounting can be applied to most anything as it can be used in numerous basic principles and objectives.
General accounting is one of the several categories in which accounting is divided. The types of accounting show the standards associated with the collection, the type of activity done and the presentation and documentation of all financial statements. These types also basically operate under their specific principles, laws and regulations.
General Accounting 101
As its name suggests, general accounting basically deals with both the collection and the ledger of general account activity. This may include debits and credits or account charges, along with the method used in documenting financial statements for the fiscal or the calendar year. A general account does not offer sub-category information that is about management. The activity included in general accounting is also related to the general activity that is associated with an entity, organization or a business account.
What makes general accounting significant? General accounting differs from the others because it relates to the business entity as a whole versus a specific group under the larger entity. A general accountant will use an accounting system to review and prepare tax returns and to examine what tax breaks are available, if any. The general accountant will give his client financial statements including income and balance sheet statements, bank statements, quarterly reports and general ledgers all based on the calendar year, the debits and credits made for that year and the type of business or organization. Tax preparation, including state, sales, payroll and other applicable taxes are included in a general accountant’s service list for small businesses.
Keep in mind that general accounting must adhere to the Generally Accepted Accounting Principles or the GAAP. This means that it must follow all the accounting laws as directed. The GAAP was created and established in order to standardize all the basic and accepted accounting principles for all businesses, both private and public, and organizations, as well as governmental agencies. All of the general accountants are subject to the basic principles of accuracy, comparability and consistency.