What is Bookkeeping?
The
simple definition of bookkeeping is that – “it is the
practice involved in the recording of transactions affecting the
operation of a business”. Bookkeeping involves a system
which records the transactions occurring in a business on a day to
day basis, and the information recorded in this manner makes up the
bookkeeping records.
These records enable the business owner or managers to assess
the performance of the business, prepare its financial statements
and product other reports and data which will allow the business
owner or the accountant/advisor to give advice or make
recommendations where the business can improve its operation and
its profitability.
Importance of
Bookkeeping
Putting in a bookkeeping system is one of
the most important tasks you have to do as a new business
owner. You will probably need the services of a qualified
accountant, or someone with experience in accounting, so you can
ensure the system incorporated will adequately serve the purpose of
providing good information that
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