In the reading this week, you learned that business transactions are first recorded in the general journal and then posted to the general ledger account, which allows management to always have a running balance for each account. Address each of the following questions from the perspective of your current employer, previous employer, or a company where you hope to work in the future.
- What are some advantages of accurate record-keeping for your specific company?
- Would you be concerned if an account had an abnormal balance? How might you investigate it?
Hi can you rewrite in your own words thank you see below
I feel some advantages of accurate record keeping for your specific company would be to show you an accurate paper trail of where your money is going and coming from. This will show you if your business is in the red or if it is in the black; this will also help if you ever get audited for any reason or sued; you will have a paper trail of everything for your company.
Would I be concerned if an account had an abnormal balance? Yes, this could mean an inaccurate transaction was documented in the logs. With abnormal balances, it could cause you to use money you really do not have which will cause you to lose assets and increase your liabilities.
How might I investigate it? I feel it is always important to have a paper trail it is important for documentation for a company. Also research your records and see if maybe there was a simple typo when adding or putting in the wrong amount in the wrong area.