You will heard of these terms such as bookkeeping and financial. It may appear as simply a plain sheets being kept or about money, but as you will try to know about it, you can appreciate its significance.
Bookkeeping is identified and referred to journals wherein financial transactions are being recorded. It is used for business transactions such as sales, purchases, income, expenses and payments by the company or individual. Bookkeeper is the person who did the certain task. He/she should make good records and make certain no missing transactions to stay away from conflict when it will be turnover to the accountant for final computation and balancing. Accountant is the one who creates reports for the recorded transactions of the bookkeeper. There are methods in bookkeeping; single-entry bookkeeping system which uses only expense and income accounts, recorded primarily in a revenue and expense journal. The other one is double-entry bookkeeping system which done by posting each transaction twice, using the credits and debits. Even though it considered as proper but still any recording transactions of financial matters still being called as bookkeeping. Purchases have page intended for purchase invoices. Sales credits will be recorded in sales credit daybook. All the money received, and the cash outflows will be recorded in cash daybook. Purchases credits daybook is used for recording all of the purchase credits notes. The bookkeeper is accountable for ensuring all the financial records and make sure to put it all in the right daybook, general ledger, supplier ledger and even customer ledger. It is imperative for all types of business to know the financial stability of the company. Also, to have a proper monitoring and management of the business flow recorded is necessary. The recorded transactions of the bookkeeper will then pass to an accountant to prepare financial statements and then present it to business partners, managers, owners, and authorized persons. In this manner, the decisions will be made. Remedial dealings will be taken.
See how vital the purpose of bookkeeping is? It would be a useless business without knowing if you really are earning or not.
