In Bookkeeping Services in Miami, financial transactions are organized into specific categories called accounts to track a business’s financial activities. These accounts form the foundation of the accounting system, particularly in double-entry bookkeeping, which is widely used in the USA. The five primary types of accounts in bookkeeping are:

Assets
Assets are resources owned by a business that have economic value and can provide future benefits. They represent what the business owns or is owed.

Examples: Cash, accounts receivable (money owed by customers), inventory, equipment, real estate, and investments.
Purpose: Assets are tracked to show the business’s financial strength and resources available for operations or growth.
Recording: Increases in assets are recorded as debits, while decreases are recorded as credits in the double-entry system.