Accounting & Book Keeping
Accounting and Book Keeping is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analysing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows.
What is Accounting?
Accounting is one of the key functions for almost any business. It may be handled by a bookkeeper or an accountant at a small firm, or by sizable finance departments with dozens of employees at larger companies. The reports generated by various streams of accounting, such as cost accounting and managerial accounting, are invaluable in helping management make informed business decisions.
What is a Book Keeping?
Bookkeeping is a data entry role focused on the recording of daily transactions, primarily your business’s income and expenses. The bookkeeper’s records are the foundation for understanding how your business is performing. It involves keeping track of a business’s financial transactions and making entries to specific accounts using the debit and credit system. Each entry represents a different business transaction.
Process of Book Keeping?
1. Analysing financial transactions and assigning them to specific accounts
2. Writing original journal entries that credit and debit the appropriate accounts.
3. Posting entries to ledger accounts.
4. Adjusting entries at the end of each accounting period
What transactions are involved?
1. It helps to analyse and formulate the budget better
2. It helps in better resource management
3. Better decision making
4. Proper reporting of every transaction
5. Tax management