Understanding Bookkeeping and Its Benefits for Business
Bookkeeping in a business enterprise is the basis of an accounting system. According to Law, bookkeeping is a record-keeping process conducted regularly to collect data and financial information covering assets, liabilities, capital, income, and costs, as well as the amount of the acquisition price and delivery of goods or services, which is closed with prepare financial statements in the form of balance sheet, and income statement for the period of the taxable year.
There are several common methods of bookkeeping: single entry-entry bookkeeping and double-entry bookkeeping. Both systems can be seen as real bookkeeping. A single-entry accounting system is the source of primary accounting records such as cash books. This is similar to a list of checking accounts and places revenue and expenses into various income and expense accounts. This system works only if you are moving in a small company with a low volume of transactions. While Paired System … Read more