Accounting terms

Dictionary of all accounting terms





What is Bookkeeping?

Bookkeeping involves recording a company's transactions into accounts in the general ledger, although it often implies basic accounting tasks, rather than complex transactions

Bookkeeping is most concerned with recording the financial transactions on a day-to-day basis for a company. These transactions often include recording supplier invoices and cash receipts, preparing customer invoices and processing payroll.

Bookkeeping can also refer to operational tasks which include remitting sales tax, preparing necessary government reports, and paying invoices.

Because there are everyday processes, often based on standardized processes, the purpose of bookkeeping is above all else accuracy. For that reason, bookkeeping only requires a basic knowledge of accounting.

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