Question

Describe (80–100 words) what actions are performed when carrying out an account maintenance function.

Answer 1

MAINTENANCE OF ACCOUNTS, in accounting, ensures that all transactions and accounting records are in accordance with generally accepted accounting principles and applicable laws, and shall be in sufficient detail to permit an annual audit.

This function involves the follwoing steps:

• Recording all the transactions as they take place on daily clsoing basis.
• Performing an monthly, quarterly and annual reconciliation to give the stakeholders a clear understanding about the transactions taking place in the concern.
• Forwarding accounting statements to finance department for further porcessing of the information for preparation of various financial statements such as Balance sheet.
• Providing the infromation when required by the audit or tax authorities time to time.
• Keeping the records safely for any dispute in future.
• Maintaining transparency while recording transactions.