General Accounting

General accounting basically refers to accounting activities, which include recording accounts receivable, invoicing, purchasing, paying and collection of items, and financial reporting for a year, quarter or fiscal year on the basis of general ledger entries. General accounting includes preparation of the financial statement and preparation of reports to the shareholders.

General accountants prepare financial reports to present an accurate picture of business performance and provide the information necessary to make sound decisions. General accounting also provides analysis and interpretation of data for the purpose of preparing reports to senior management. The reports prepared by general accountants are usually used to make strategic financial decisions for business owners.

General accountants have two primary jobs. The first is to conduct the financial transactions for the company. The second is to record and report the income or loss of the company, as well as the profit of the corporation. The third job is to keep accurate records of the income and assets, liabilities, and equity of the company, in order to conduct operations.

General accountants conduct the financial transactions of the company. These include preparing and maintaining general ledger, tax returns and payroll. The general ledger is a book of accounts, which is maintained in accordance with general laws such as tax laws and general ledger laws. General ledger records the business transactions in a general manner. General ledger also keeps general accounts and balances of assets, liabilities and equity.

If a company is going to purchase goods from another firm, the general accountant prepares a general account in order to prepare a tax return and pay the tax liability to the government. After taxes, general accounting prepares reports and analyses the cash flow of the company. General accountants also prepare reports and analysis related to the profit of the company. General accountants prepare reports and forecasts for the future profitability of the company. General accountants prepare financial statements and perform other analysis of the financial performance of a company.

General accountants perform their accounting duties by using computers and financial accounting software. They prepare general ledger, general balance sheet, financial statement, and financial reports for the company and prepare financial reports in the form of tables, graphs, bar charts, etc. for submission to the directors of the company, investors and other authorized personnel.

General accountants have to conduct a general audit of the business for financial reporting purposes. These audits may be performed by private investigators or certified public accountants (CPAs). General auditors prepare annual reports, which are published and made available to the public on the company’s financial statements, quarterly or yearly.

General accountant should possess a bachelor’s degree, at least two years of experience as a bookkeeper, and should have accounting and business experience. General accountants should have excellent computer skills, analytical skills, good communication skills, and problem-solving abilities. General accountants should work independently or with an accountancy firm, a bookkeeping consulting firm or a bookkeeping service. A general accountant also needs to have knowledge of the accounting laws, such as accounting rules, statutes, and regulations, the accounting software used in a particular accounting environment, and the accountant’s legal rights. It is also important for the general accountant to have good business skills and should have excellent communication skills.

General accountants have to follow the accounting policies of a business in order to prepare a financial statement and perform an audit. General accounting is considered to be the major accounting function in a company since it provides the basis for the preparation of a company’s income statement.

General accounting can be subdivided into four sections, namely, sales, general ledger, tax, and internal bookkeeping and financial reporting. A general accountant prepares general ledger of a company, which is the statement of accounts of the firm’s revenue and expenses. It includes information relating to the ownership and control of a firm, its liabilities and equity, the income of the firm, and its assets, its credit rating and the current and long term debt of the firm, etc.

A general accountant prepares general ledger of a company by entering into a contract with a third party that provides general ledger services. General ledger consists of the general ledger of a firm with all the financial data entered into the ledger.

General Accounting
Scroll to top