Bookkeeping means the recording of all financial transactions undertaken by an individual, organization or a business entity. It is the record-making phase of accounting. The recording of transactions tends to be mechanical and repetitive; it is only small part of the field of accounting and probably the simplest part.
We update and maintain accounting records, including those which calculate expenditures, receipts, accounts payable and receivable, and profit and loss. We have a wide range of skills and expertise in maintaining an entire company?s books. Our staff makes numerous computations each day using computers to calculate and record data. We usually perform two common bookkeeping methods in keeping records for our business client?s day-to-day financial transactions aside from our computerized bookkeeping software. These are the single-entry bookkeeping system and double-entry bookkeeping system. In single-entry bookkeeping, income and expense accounts are recorded primarily in a ?Revenue and Expense Journal?. Separate account records are maintained for petty cash, accounts payable and accounts receivable, and other related transactions such as inventory and other expenses. While in double-entry bookkeeping, we do posting or recording of transactions twice using the debits and credits. These include purchases, sales, vouchers, receipts and payment. We make sure that all business and financial transactions are recorded in the correct book, from journal entries, general ledger up to the trial balance stage. From these, we prepare balance sheet, profit and loss statement, changes in equity, etc. Bookkeeping is really important in the preparation of financial statement.
We also use specialized accounting software, spreadsheets, and databases to make our bookkeeping services more convenient for our clients. This makes us save more time and to do additional responsibilities and services, such as payroll, procurement, and billing. Many of these responsibilities need writing and sending letters, email and fax messages and making phone calls to clients.