Definitions of summarizing in phases of accounting?

The initial stage of the accounting process includes creating supporting documents forfinancial transactions that have taken place. These documents may take the form of vouchers and will include information regarding the transaction including the date, value and the account it was paid in to or out of.

• Recording transactions

Using the information collated on the vouchers, the accountant will then transfer this information in to a book of accounts where other information about the company's transactions will be recorded in the form of journal entries.

• Classifying journal entries

The information recorded will be divided up under different headings. For instance, each set of information about one transaction will fall under two accounts or two records.

• Presenting financial statements

An accountant will usually find themselves doing the accounts for a company that needs to create statements to send out to suppliers or other business clients. Part of their job will be to create and summarize these statements in order to then create a Trial of Balance. This balanced information is then used to help a company balance its books before the end of the financial year. In addition, this will also include recordingany profits or losses.