BOOK-KEEPING
meaning of book-keeping:
Bookkeeping is the process of systematically recording, organizing,
and managing all financial transactions and activities of a business or individual.
components of bookkeeping
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Recording Transactions : Documenting all financial transactions, including income, expenses, sales, and purchases.
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Categorizing Entries :Classifying transactions into appropriate categories such as revenue, expenses, assets, and liabilities.
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Maintaining Ledgers :Keeping detailed records in ledgers like the general ledger, accounts receivable, and accounts payable.
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Reconciling Accounts : Regularly matching financial records with bank statements to ensure accuracy.
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Preparing Financial Statements :Creating reports such as balance sheets, income statements, and cash flow statements to summarize financial health.
