Book Keeping - The Key to Maintaining Proper Accounts!
Book Keeping is vital to business and is the base of accounting. Book Keeping can be basically described as the recording of financial activities undertaken by an entity. It allows the entity to keep track of all of its financial transactions, assets and liabilities as well as provide al the data to analyse the progress potential.
Book Keeping provides a large number of job opportunities and seems to be one of the fastest growing employment groups today. In the United States of America alone there are over two million book keepers or accounting clerks who work either part-time or full-time.
Book Keeping can be both simple and complex. It can be just the listing of payments on a page to the recording of all details of receipts, purchases, sales and payments. Book Keeping can be done either manually or with the help of a computer. Books, daybooks and ledgers serve as the record books of manual Book Keeping. Many find it easier and more efficient to use a computer and excel sheets and other such facilities for maintaining accounts.
There are two types of Book Keeping, namely, single-entry book keeping and double-entry book keeping. The latter is favoured by the majority although single-entry book keeping is also used.
Small businesses usually opt for single-entry book keeping since it is the most simple and easy form of Book Keeping. It records the essentials of financial transactions such as cash accounts, Accounts Payable, Accounts Receivable and also taxes. The biggest disadvantage of single-entry book keeping is that it leaves room for miscalculations and omissions, and also theft.
Double-entry book keeping on the other hand also records assets, liabilities, inventory, expenses, income and all the other elements of financial transactions that single-entry book keeping leaves out. The information collected is thorough enough to be compiled into an income statement and balance sheet by an accountant. Single-entry book keeping is best used where the volume of financial activity is low.
For more infomation on bank accounts choose from the list below. |
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Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
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