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Traditional and Modern Accounting ProceduresBefore starting to record business transactions, Accountants have to decide what accounts to maintain and also specify the rules on how to allocate transactions to particular accounts. A Chart of Accounts and an Accounting Manual are the typical accountancy documents that are created to achieve these ends.

The recording of day-to-day transactions into books of account is known as book-keeping. Book-keepers refer to the chart of accounts and accounting manual when necessary and allocate business transactions to the correct accounts.

The graphic to the right looks at traditional and modern book-keeping practices (click on the graphic to enlarge it for readability). In traditional, paper-based systems, book-keeping typically involved:

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Kellen Bednar

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