Bookkeeping Basics

0 like 0 dislike
456 views
in Articles - BeautifulWolf
Most people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers.

Bookkeepers perform all manner of record-keeping tasks. Some of them include the following:

-They prepare what are referred to as source documents for all the operations of a business - the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production.

-Bookkeepers also make entries of the financial effects into journals and accounts. These are two different things. A journal is the record of transactions in chronological order. An accounts is a separate record, or page for each asset and each liability. One transaction can affect several accounts.

-Bookkeepers prepare reports at the end of specific period of time, such as daily, weekly, monthly, quarterly or annually. To do this, all the accounts need to be up to date. Inventory records must be updated and the reports checked and double-checked to ensure that they're as error-free as possible.

-The bookkeepers also compile complete listings of all accounts. This is called the adjusted trial balance. While a small business may have a hundred or so accounts, very large businesses can have more than 10,000 accounts.

-The final step is for the bookkeeper to close the books, which means bringing all the bookkeeping for a fiscal year to a close and summarized.

Please log in or register to reply to this post.

Related posts

0 like 0 dislike
0 comments 419 views
0 like 0 dislike
0 comments 1,362 views
0 like 0 dislike
0 comments 459 views
0 like 0 dislike
0 comments 431 views
0 like 0 dislike
0 comments 425 views
0 like 0 dislike
0 comments 455 views
0 like 0 dislike
0 comments 438 views
0 like 0 dislike
0 comments 414 views
0 like 0 dislike
0 comments 404 views
0 like 0 dislike
0 comments 420 views
0 like 0 dislike
0 comments 450 views
0 like 0 dislike
0 comments 403 views
0 like 0 dislike
0 comments 410 views
0 like 0 dislike
0 comments 438 views
0 like 0 dislike
0 comments 392 views
0 like 0 dislike
0 comments 424 views
0 like 0 dislike
0 comments 420 views
0 like 0 dislike
0 comments 426 views
0 like 0 dislike
0 comments 383 views
0 like 0 dislike
0 comments 406 views
0 like 0 dislike
0 comments 379 views
0 like 0 dislike
0 comments 444 views
0 like 0 dislike
0 comments 368 views
0 like 0 dislike
0 comments 357 views
0 like 0 dislike
0 comments 361 views
0 like 0 dislike
0 comments 365 views
0 like 0 dislike
0 comments 310 views
0 like 0 dislike
0 comments 332 views
0 like 0 dislike
0 comments 301 views
0 like 0 dislike
0 comments 301 views
0 like 0 dislike
0 comments 354 views
0 like 0 dislike
0 comments 341 views
0 like 0 dislike
0 comments 303 views
0 like 0 dislike
0 comments 353 views
0 like 0 dislike
0 comments 345 views
0 like 0 dislike
0 comments 324 views
0 like 0 dislike
0 comments 313 views
0 like 0 dislike
0 comments 349 views
0 like 0 dislike
0 comments 350 views
0 like 0 dislike
0 comments 392 views

55,458 posts

595 comments

2 comments

720,053 users

Connect with us:
...