Book Keeping

Book Keeping

Book keeping involves the recording, storing and retrieving of financial transactions for a company, non-profit organization, individual, etc.

Common financial transactions and tasks that are involved in book keeping include:

  • Billing for goods sold or services provided to clients.
  • Recording receipts from customers.
  • Verifying and recording invoices from suppliers.
  • Paying suppliers.
  • Processing employees pay and the related governmental reports.
  • Monitoring individual accounts receivable.
  • Recording depreciation and other adjusting entries.
  • Providing financial reports.
  • Today book keeping is done with the use of computer software. For example, QuickBooks (from Intuit) is a low-cost book keeping and accounting software package that is widely used by small businesses in the U.S.

Book keeping requires knowledge of debits and credits and a basic understanding of financial accounting, which includes the balance sheet and income statement.