Posting in Accounting

Video Transcript

"Hi there I'm Spencer Cottam with Account Teams in Salt Lake City. Today I'm going to talk to you about the posting operation in accounting. Historically, everything that was brought into the accounting system was brought in through ledgers, or journals, excuse me through journals, they were put into the sales journal or accounts receivable or accounts payable or different type of journals. Then these amounts were posted to accounts. They would be accounts on a vendor that you owed money to or someone you were buying things from or people that owed you money or general accounts for utilities and other type of things. This posting was done so you keep track of individual items and make sure that you understood who owed you money, who you owed money and where your other money was going paying for the goods you bought, selling them and other expenses. In the posting operation historically it was very susceptible to errors where people transfer information and they would make mistakes and the accountant would be up all night trying to find out where the last two pennies have gone. In today's accounting it's made a lot easier because with computer programming the posting is done almost automatically as you make your entries as are many of the other financial functions that an accountant has to do."