Bookkeeping
|
Bookkeeping
Bookkeeping is the recording of financial transactions, including sales, purchases, income, receipts and payments by an individual or organization. • Purchased supplies on account • Received cash for providing a service • Paid expenses in cash • Received an investment of cash from the owner • Experienced a cash withdrawal by the owner. • Received cash from a customer who had previously been billed for services provided • Paid cash to purchase equipment • Paid employee salaries • Paid a creditor from whom the business had previously purchased supplies on account • Sold new shares of stock • Paid cash for monthly rent on the office space • Paid cash for monthly utility bills • Performed services on account • Made a payment on a loan received from the bank • Purchased for cash merchandise that will be later resold for profit Five reasons why bookkeeping can benefit you • Complete and organized records can help identify the sources of income • Complete and organized records can mean tax savings • Complete and organized records can prevent most of the problems if the business is selected for audit • Good records keep the owners better informed about the financial position of their businesses • Complete and organized records may help businesses get loans from banks and other creditors |
|
|
