Bookkeeping is the process of recording your business entity’s financial transactions into organized accounts, daily.
The daily recording of business transactions can be done manually on paper or, on computer using spreadsheets or, you can use accounting software such as Quickbooks, Xero and Wave.
Bookkeeping is often regarded as a long, tiring and tedious task. Many business owners hate it. Some might enjoy it. At the end of the day, it is something important that must be done if you own a business. It does not matter if you choose to do it yourself or if you choose to hire a bookkeeper to help you. Without adequate financial record-keeping, your business will collapse. It is often said that most businesses that fail within the first seven years, fail as a result of not maintaining control over the finances and bookkeeping aspect of running a business.
In this upcoming series of articles about bookkeeping, we will learn about the historical origin of the practice. Thereafter, we will learn about the accounting equation, double-entry principle and the different components of bookkeeping namely, the general ledger, trial balance, balance sheet and income statement.
