The Basics of Bookkeeping

On 10 Sept., 2018

Bookkeeping is defined as the process of keeping maintained records of the financial transactions taking place in an organization.

The Basics of Bookkeeping

Conventionally, Bookkeeping is defined as the process of keeping maintained records of the financial transactions taking place in an organization. These transactions might include receipts, sales, payments, and purchases. As far as the basics of bookkeeping accounts are concerned, they consist of inventory, sales, purchases, payroll expenses, loans payable, and retained earnings. It is the 4 basic steps task as follows:

  • Analysis of transactions
  • Writing the Journal entries
  • Posting the entries
  • Adjusting the entries

Apparently, bookkeeping is similar to accounting; however, there’s a major distinction. Accounting involves the classification, analysis, interpretation, reporting, and summarization of the data, whereas, bookkeeping deals with the record formation of the financial transactions. Along with the big-scale established businesses, Bookkeeping is also essential for the small business. You can forecast your upgrades and make honest plans for the expenses. Moreover, track your expenses, maintain the correct record of the deposits, allocate some money for the taxes, and track your invoices.

Bookkeeping is the sole responsibility of the bookkeeping clerks. They are required to be efficient, accurate, and knowledgeable about the process of paperwork involved in a company’s business transactions. Their job is to receive payments, make the deposits, and record all the financial transactions including post debits and credits in the financial ledger. In the United States, the average salary of a bookkeeping clerk is $41,774; however, it varies in accordance with a number of factors such as skills, education, experience, and certifications. Summarily, the main duty of a bookkeeping clerk is to keep the record of all the financial transactions along with ensuring the accuracy.

Do you want to become a bookkeeper in Dubai? The basic bookkeeping skills include efficient data entry skills, paying attention to details, communication skills, organization, discipline, knowledge of the bookkeeping principles and immense commitment towards the work. Due to the advent of technology, the demand for these keepers has reduced to some extent and its scope is dependent upon the size of the business.

The Basics of Bookkeeping
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