TCS Accounting is a monetary transaction information system that is typical to the normal bookkeeping and accounting processes. It is a foundational project for other projects in TCS.
Typically, business operations are centered on a considerable number of financial interplays. TCS Accounting is saddled with the responsibility of managing the various interplays surrounding possible financial based activities within a typical business.
In the accounting domain, there’s a communication language used by financial accountants to express terminologies and operations within the practice. TCS Accounting understanding of these terminologies and operations are derived from an online resource AccountingCoach.com authored by Harold Averkamp
The stipulated online resource provided proper insight into typical representations and operations captured in bookkeeping and accounting.
Based on study, the following evaluations were deduced:
- There are two(2) methods of accounting namely, accrual and cash accounting.
- Accounting involves classification of coordinated related operations over a period of time.
- These classifications provide the necessary intelligence to grasp the operations of any typical business.
- This intelligence (information) is structured around 3 main fundamental financial report called statements namely: Income Statement, Balance Sheet, Statement of Cash Flows
- Business activities that carry financial data are considered as transactions
- Journal entries are used to record this transactions in accounting records
- Accounting Records are organized in a detailed listing call chart of accounts
- All operations in an accounting system are considered and recognized over a period of time called accounting period.
Anatomy of Accounting Records Classification
Typically, business activities are usually captioned as transactions. These business activities(transactions) within a company carry financial data. In order to effectively manage this financial information, accountants developed a system of sorting financial data (entries) into records called accounts.
Business transactions are then recorded into accounting records (a.k.a accounts). Account is a terminology used to represent an accounting record - which is an organized collection of a company’s financial data.
A company is usually associated with a detailed list of accounts for recording transactions. In a typical accounting system, this detailed listing of accounts is usually referred to as the company’s chart of accounts. A company can tailor its chart of accounts to best suit its business operations needs.
Accounts are usually organized in the charts of accounts as follows:
- Owner's (Stockholders') Equity
- Revenues or Income
This categorization can be further represented as
Note: Obviously, there are accounts for recording transactions. This implies that there may be accounts for not recording transactions.