What Are Accounting Structures?
Accounting structures illustrate organized frameworks businesses use to record and report financial transactions. These structures tell us how income, expenses, assets, and liabilities can be tracked. The key components of accounting structures are:
- Chart of accounts
- Accounting periods
- General ledger
- Subsidiary ledgers
- Financial Statements
- Cost centers
- Double-entry accounting system
If you have ever built some IKEA furniture, you’ll understand the accounting structures better. These structures represent the IKEA instruction manual. So, you can see the big picture of your furniture (we mean finances).
