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Bookkeeping

Bookkeeping is the recording of all financial transactions undertaken by a business (or an individual). A bookkeeper (or accounting clerk) is a person who keeps the books of an organization. The organization might be a business, a charity or a local sports club. more...

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Two methods are widely in use: single-entry accounting system and double-entry bookkeeping system (also known as the double-entry accounting system). The latter is more common.

The system most commonly used in bookkeeping is the double-entry bookkeeping system. A bookkeeper is usually responsible for writing up the \"daybooks\". The daybooks consist of purchase, sales, receipts and payments. The bookkeeper is responsible for ensuring that all transactions are recorded in the correct daybook, suppliers ledger, customer ledger and general ledger. The bookkeeper will bring the books to the trial balance stage for a financial accountant. This accountant will prepare the profit and loss statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.

Bookkeeping can also consist of simply listing payments on a page, e.g. recording deposits received from people (single entry bookkeeping).

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