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Home Posts tagged "Bookkeeping"

Tag: Bookkeeping

The bookkeeping process primarily records the financial effects of transactions. The difference between a manual and any electronic accounting system results from the former’s latency between the recording of a financial transaction and its posting in the relevant account. This delay—absent in electronic accounting systems due to nearly instantaneous posting into relevant accounts—is a basic characteristic of manual systems, thus giving rise to primary books of accounts such as Cash Book, Bank Book, Purchase Book, and Sales Book for recording the immediate effect of a financial transaction.

In the normal course of business, a document is produced each time a transaction occurs. Sales and purchases usually have invoices or receipts. Deposit slips are produced when lodgements (deposits) are made to a bank account. Checks (spelled “cheques” in the UK and several other countries) are written to pay money out of the account. Bookkeeping first involves recording the details of all of these source documents into multi-column journals (also known as books of first entry or daybooks). For example, all credit sales are recorded in the sales journal; all cash payments are recorded in the cash payments journal. Each column in a journal normally corresponds to an account. In the single entry system, each transaction is recorded only once. Most individuals who balance their check-book each month are using such a system, and most personal-finance software follows this approach.

Articles about "Bookkeeping"

bookkeeping

The Danger of Designating Bookkeeping Tasks to Non-Accountants

By Emy Bautista | Accounting, Business advice, Outsource Accounting, Outsource bookkeeping, Outsourcing | 11 January, 2017 |

Based on a survey conducted by “Accountants World” in 2016, only 15 percent of small businesses hire accountants to perform their accounting and bookkeeping works.   There are different reasons why this practice keeps happening, but the most common are lack of resources to employ accountants and the belief of the business owners that they canExplore Now

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