Businesses around the world make millions of payments every day. Every business that conducts business as a legal entity makes a large number of financial transactions that it has to keep under control. Therefore, the law requires all state and commercial companies to reflect them in an accounting system to keep track of individual items.
What is a Posting?
Posting in accounting is the procedure of making entries from trial documents to a relevant general ledger, which contains a record of the vast volume of transaction activity.
First of all, an accountant must make all the data entries to the various subsidiary books and the journal. Entered data must be posted to the general ledger, so the accountant can later create financial statements. Otherwise, neither the totals in the general ledger nor the financial statements will show the correct figures.
Rules of Posting in Accounting
In today’s business world, a computerized accounting system does the bigger part of the accounting. Here, some basic rules apply:
- The date entering;
- Each transaction must have monetary value;
- According to double-entry rule, data entry of each transaction with the same monetary unit involves two corresponding accounts, one entry on the debit side and another – on credit.
Computerized Accounting System Postings
The computerized accounting system is the system that collects, records, and processes informative data to produce financial reports. This process provides managers and investors with information essential for making decisions.
Every accounting system has two aspects.
First, it has to work under a set of regulations called accounting principles.
Second, the user-friendly framework allows us to maintain books’ records as well as generate financial reports.
For computerized posting, an accountant should log into the system and enter the appropriate module. Before posting, he/she should enter all the data, check for errors, correct if necessary, and save it. Once done, the system can post the data to the relevant accounts.
Computerized accounting has some advantages over manual accounting. They include speed, data accuracy, up-to-date information, and reports’ generation.