Book keeping involves the recording, storing and retrieving of financial transactions for a company,Â 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 individualÂ accounts receivable.
- RecordingÂ depreciationÂ and other adjusting entries.
- ProvidingÂ financial reports.
- Today book keeping is done with the use of computer software. For example, QuickBooks (from Intuit) is a low-cost book keeping andÂ accountingÂ software package that is widely used by small businesses in the U.S.
Book keeping requires knowledge ofÂ debitsÂ and credits and a basic understanding of financial accounting, which includes the balance sheet and income statement.