Financial Classes

What is Bookkeeping

Bookkeeping is essentially a subset of the larger topic of accounting. Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information base of an entity, which is needed for two basic purposes:

  • Facilitating the day-to-day operations of the entity
  • Preparing financial statements, tax returns, and internal reports to managers

Bookkeeping is the recording of basic accounting transactions, such as:

  • Issuing invoices to customers
  • Recording invoices from suppliers
  • Recording cash receipts from customers
  • Paying suppliers
  • Recording changes in inventory
  • Processing payroll
  • Processing petty cash transactions