Introduction to Basic Bookkeeping


What is Bookkeeping?
                Bookkeeping involves the recording, on a daily basis, of a company’s financial transactions. With proper bookkeeping, companies are able to track all information on its books to make key operating, investing, and financing decisions.
Bookkeepers are individuals who manage all financial data for companies. Without bookkeepers, companies would not be aware of their current financial position, as well as the transactions that occur within the company.

Importance of Bookkeeping
Proper bookkeeping gives companies a reliable measure of their performance. It also provides information on general strategic decisions and a benchmark for its revenue and income goals. In short, once a business is up and running, spending extra time and money on maintaining proper records is critical.


What is a Financial Transaction?
Financial Transaction is an event involving the sale of goods or services, payment of bill or expense, deposits or borrowing of money, or buying or selling of property. It is an activity that changes the value of the assets, liabilities, or owner’s capital of a company or business entity.

Four Main Types of Financial Transactions:
             Sales
             Purchases
             Receipts

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