The type of accounting records needed depends on the size and scope of the business. For any business except the smallest of enterprises, the services of a qualified accountant are usually required, but the following form the basis of any accounting system:

1  Cash Receipts Journal
A book that details all cash received and deposited the date received, from whom received and the relative classification of the amounts received:

2 Cash Disbursements journal
A book that details all cash disbursed and cheques issued, date disbursed, and to whom disbursed. Each amount disbursed is classified:

3 Payroll Journal
This book contains a sheet for every employee, that list:

The Payroll Journal also contains a summary of total payroll and total deductions for each period.

4 Accounts Receivable Ledger
This book contains the individual account of each customer who has purchased good on credit. Each customer has a ledger sheet that details:

Periodically the individual balances are added up (usually once a month) and the total reconciled to the account receivable balance in the general ledger.

5 Accounts Payable Ledger
This book records the individual account of every supplier to whom money is owed. The information and procedures are identical to the account receivable ledger

6 Sales journal
To record sales both cash on account

7 Purchases Journal
To record purchases both cash and on account.

8 General Ledger
This book is the final point of the accounting system. The various amounts from the above 7 books are clarified and totaled. The financial statements are prepared from this book.Next: Basic Financial Statements