Bookkeeping is the process of recording financial transactions and is part of the process of accounting in business and other organizations. It involves preparing source documents for all transactions, operations, and other events of a business, including 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 bookkeeping systems. While bookkeeping is often viewed as an administrative task, it is an essential part of the accounting process for several reasons. When transaction records are kept updated, accurate financial reports can be generated to measure business performance, and detailed records will also be handy in the event of a tax audit. Bookkeeping is just one facet of doing business and keeping accurate financial records. With well-managed bookkeeping, a business can closely monitor its financial capabilities and journey toward heightened profits, breakthrough growth, and deserved success.
Bookkeepers are individuals who manage all financial data for companies. They usually write the daybooks (which contain records of sales, purchases, receipts, and payments), and document each financial transaction, whether cash or otherwise. Bookkeeping traditionally refers to the day-to-day upkeep of a business’s financial records, and bookkeepers used to simply gather and quality-check the information from which accounts were prepared. But their role has expanded over time. Accounting refers to the analysis, reporting, and summarizing of the data that bookkeepers gather. Accounting reports give a picture of the financial performance of a business.
