Building Blocks of a Bookkeeping System

At the root of any system you’ll find the essential elements that form the basis of that system. In the world of bookkeeping, the three most fundamental building blocks to any bookkeeping system are:



  • Chart of Accounts: Lists all accounts in the books and is the road map of a business’s financial transactions



  • Journals: Place in the books where transactions are first entered



  • Nominal Ledger: The book that summarises all a business’s account transactions






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Source:http://www.dummies.com/how-to/content/building-blocks-of-a-bookkeeping-system0.html

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