bisnisrakyat.id - In the digital era like today, various transaction facilities can be enjoyed by various groups, one of which is millennials and generation z. According to the Kata Data website, the majority of millennials and generation z savings are only enough for 3 months of living expenses. Therefore, millennials and generation z must be able to manage their finances. The first step to managing finances, they must first understand what accounting is. Accounting is the process of recording, grouping, processing and presenting transaction data to see financial performance in a certain period and used to predict future steps.

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The basic accounting process is divided into 4 stages, namely recording, grouping, reporting and analyzing.
1. Recording
Recording is the activity of documenting an event that is used for a specific purpose. In accounting, recording is known as bookkeeping or journaling. Accounting records all transactions related to the flow of money in and out.

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2. Grouping
Grouping is the activity of separating or breaking data into a number of specific groups according to the desired characteristics. Usually in accounting the data presented is still raw data. Therefore, data needs to be grouped so that it is easy to present and analyze.

3. Reporting
Reporting is an activity of conveying or informing about what has been done or happened. After the grouping process, data and all transactions are then presented in financial reports to be used as consideration in decision making. Financial reports are usually made monthly, quarterly, or annually.

4. Analyzing
The last basic accounting process is analyzing. Analyzing is the activity of breaking something down into smaller parts so that a deeper meaning is obtained. In accounting, the analysis carried out is comparing profits, sales, equity, and so on to determine performance. The results of this analysis will be used as consideration in making strategic decisions in the future.

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After knowing how the accounting process works, millennials and generation z can prepare their financial management plans. Record income and expenses to find out how much income is earned and how much money is spent. Make a monthly shopping plan to limit and know all the money spent per month. Start saving and investing so that your future financial condition is stable and healthy. Prepare emergency funds if something unwanted happens such as an accident and so on.