Generally bookkeeping is considered a dry subject among the students. However, in bookkeepingforbeginners website we have simplified a few basis rules of bookkeeping that not only make the bookkeeping easy for students to understand, but also will be useful in future while working in the field of Accounts and Finance.
Bookkeeping is a system of recording the financial transactions of a business. Bookkeeping is the art and science of recording business transactions in the books of accounts systematically and scientifically.
Although bookkeeping is centuries old method, it is still the only globally used method used by the accountants to recording the financials transactions of businesses. Surprisingly, in this fast paced and dynamic era bookkeeping has still not been replaced by a more sophisticated method.
Beginners of bookkeeping must appreciate the art behind this method. It revolves around the double entry system. Each financials transaction has its two aspects, a Debit and a Credit, and double entry records a financial transaction into books of accounts using the same system. The method has been explained in detail under How bookkeeping works.
Bookkeeping is crucial for success of any business and is an essential part of business operations as it helps keeping track of all business financial transactions. Therefore, bookkeeping makes it possible to not only manage the business but to plan the growth too. The benefits have been further discussed under Small Business Bookkeeping.
Often the terms Bookkeeping and Accountancy are used interchangeably. However, that is not true! In fact accounting begins where bookkeeping ends. The difference has been explained under Bookkeeping vs. Accountancy.