BOOKKEEPING

Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts and payments by an individual person or an organization /corporation.

There are several standard methods of bookkeeping. Including the single entry and double entry book keeping systems. While these may be viewed as “real” book keeping, any process for recording financial transactions is a book keeping process. Bookkeeping is a work of a book keeper, who record the day-to-day financial transactions of a business. They usually write the day book. And documents each financial transactions, whether cash or credit, into the correct day book – that is, petty cash book, supplier ledger, customer ledger, etc. And the general ledger. Thereafter, an account can create financial reports from the information recorded by the bookkeeper. The bookkeeper brings the books to the trial balance stage: an accountant may prepare the income statement and the balance sheet using trial balance and ledgers prepared by the bookkeeper.