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What is Bookkeeping?


What is Bookkeeping

·    The activity of recording business transactions
·    Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, and payments by an individual or organization.
·    A bookkeeper usually performs bookkeeping. Bookkeeping should not be confused with accounting. .
·    Book keeping - Maintaining the accounts, by written record in the books, or by electronic data entries
·    The record keeping aspect of accounting that is applied in the preparation of financial statements for taxation and other data that companies and individuals use to keep track of business and personal expenses and obligations.
·    The part of accounting that involves recording economic transactions and events electronically or manually; also called record keeping.
·    This is the process of entering data into an accounting system, including the amount, date, and source of each revenue or expense. No accounting system will work without reliable bookkeeping.
·    Bookkeeping, commonly referred to as keeping the books, is the process of keeping full, accurate, up-to-date business records. Proper bookkeeping can help businesses effectively manage cash flow, stay abreast of profits and losses, and develop plans for the future based on financial trends. Furthermore, accurate bookkeeping is required by both federal and local tax agencies.
·         Bookkeeping involves making a record of the monies received by a business as well as the monies paid out. It encompasses money a company owes to vendors, employees, tax agencies, contractors and any other individual or entity. Likewise, accurate records of amounts owed to a company by outside individuals and organizations are recorded in a company's books.
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Tnx for reading
KSM

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