Bookkeeping: Facts To Learn

In business, one of the most complicated tasks to do is to keep track of all the transactions – expenses, receivables, books, etc. Handling the finances is one challenging task to do, and some businesses fail to do so. This is why accountants and bookkeepers are becoming more in-demand today. These professionals help businesses account their transactions, making it easier for them to evaluate whether the business is doing good or not. 

Is your business employed with a bookkeeper? Do you know everything about the process? Here are a few facts to learn:

• In bookkeeping, all transactions are handled in a systematic and logical way. 

• The qualities of a good bookkeeper – knows how to understand and enter transactions, does regular entry of transactions, can reconcile bank statements immediately, can prepare reports instantly, and can recognize the problem area in the business. 

• There are 2 bookkeeping conventions – (1) double entry and (2) debit and credit. In double entry bookkeeping, every transaction has to have 2 entries. In a ledger, a money transaction is recorded in 2 opposite sides. The results should always be balance. On the other hand, debit and credit is the process of entering money transactions on either side, the debit (left side) or the credit (right side).

Trivia info source: Perth Bookkeeping Group