Book Keeping is the listing of different financial transactions, and is typically a part of the operational procedure of associations and business. It entails preparing fiscal resource documents for daily operations, financial tasks, and many other such events of a company. The term, Book Keeping may also be used as an abbreviation of Bookkeeping and Accounting.
Since early time, book keeping is an integral component of human history because it is used to collect and keep data. It helps to arrange different data in a systematic manner with the aim of decision making. In simple words, book keeping helps to arrange financial transactions in a systematic manner. Basically, book keeping includes two aspects a physical aspect and a mental aspect.
Physical facet identifies the things that should be kept in book keeping like ledgers, journals, ledger, slips, registers, books, micro-books, manuals etc.. The second aspect is related to the mental aspect of book keeping i.e. the process of entering or collating information, interpretation of information, and last but not least, assessing whether all the information entered was accurately recorded. The entire process of book keeping is a really delicate one and needs to be handled with caution so that the transactions are properly recorded and the business remains safe from any type of frauds.
The third aspect is just as important for any type of business transaction accounting. It is an evaluation of the fiscal position of any company or organisation. It's used to forecast the earnings, operating profits, and also some other relevant economic factors of the company. Therefore, proper accounting plays a vital role in the overall success of any business or organisation.
Book Keeping is not a difficult undertaking, even though it requires some amount of concentration and dedication, but it's extremely critical for any type of business, especially for those who aim at making their home business a success. For home businesses, book keeping is vital, as the most important financial transactions occur. The following tips will help you keep track of all of your transactions readily:
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Rosen Britt Joined: May 24th, 2021 Articles Posted: 193
