Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually performed by an accountant. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper. There are some common methods of bookkeeping such as the Single-entry bookkeeping system and the Double-entry bookkeeping system. But while these systems may be seen as "real" bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.
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From wikipedia
Bookkeeping involves the recording, storing and retrieving of financial transactions for a company, nonprofit organization, individual, etc.
ReplyDeleteCommon financial transactions and tasks that are involved in bookkeeping include:
--Billing for goods sold or services provided to clients.
--Recording receipts from customers.
--Verifying and recording invoices from suppliers.
--Paying suppliers.
--Processing employees' pay and the related governmental reports.
--Monitoring individual accounts receivable.
--Recording depreciation and other adjusting entries.
--Providing financial reports.
Bookkeeping requires knowledge of debits and credits and a basic understanding of financial accounting, which includes the balance sheet and income statement.
Source: Leading Los Angeles accounting firms