Book keeping in the context of a business is simply the recording of financial transactions of an organization. Transactions include purchases, sales, receipts and payments by an individual or organization. There are many people who consider accounting and bookkeeping are same. The thing is accounting process includes the bookkeeping function and is just one part of accounting process. Bookkeeping is usually performed by bookkeeper. A bookkeeper is also known as accounting clerk, is liable to record the day to day financial transactions of an organization. A bookkeeper is usually responsible for recording in the day books that consists of purchase, sales, receipts and payments.
Job description of a Bookkeeper
A bookkeeper job description includes paying the bills, handling the incoming money, and tracking the flow of outgoing money. Bookkeepers fill out the tax forms for the company and work with the senior accountant to ensure the accuracy of the accounts. Handling employee payrolls and commissions are also included in a bookkeeper job description. Depending on the size of the company, bookkeepers may work alone or with assistants known as accounting clerks. Bookkeeping department of a company maintains its subsidiary accounts by verifying, allocating, and posting transactions.
Double - Entry book keeping system
A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts. The two effects of an accounting entry are known as Debit and Credit. Accounting system is based on the principal that for every Debit entry there will always be an equal credit entry. This is known as the Duality Principal. Debit entries are those which results in increase in assets & expense and decrease in liability, equity and income. Credit entries are those which results in decrease in assets and expenses and increase in liability, equity and income.
Bookkeeping is the recording of financial transactions on a day to day basis pertaining to the business enterprise. It is concerned with ensuring that records of those individual financial transactions are accurate, up-to-date and comprehensive. Therefore accuracy is very important to the process. Bookkeeping provides the information from which accounts are prepared but is a distinct process, preliminary to accounting. Emirates Chartered Accountants Group Dubai provides bookkeeping services to the clients to reduce their burden of handling financial aspects. For a free consultation reach us at firstname.lastname@example.org