Bookkeeping is the process of recording all financial transactions in a company's accounts on a daily basis. This includes documenting bills, receipts, invoices, and other business documents. Transactions can be recorded by hand, in a spreadsheet, or using bookkeeping software. Maintaining accurate bookkeeping allows a business to monitor its finances, performance, and progress toward goals. It provides the financial records needed to understand a company's financial situation and address any issues.

1. Category: BOOKEEPING
ACCOUNTING I CONSULTING I TAX
Method of bookkeeping
Function of bookkeeper
Advantage of bookkeeping
WHAT IS bookkeeping

2. What is Bookkeeping?
Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily
basis. Which is also essential part of your accounting process for keeping transaction records updated,
generate accurate financial reports that help measure business performance. These business activities are
recorded based on the company’s accounting principles and supporting documentation.
Examples of these documents include:
• Bills
• Receipts
• Invoices
• Purchase orders
Business transactions can be recorded by hand in a journal or an Excel spreadsheet. To make things easier, many
companies opt to use bookkeeping software to keep track of their financial history. With well-managed
bookkeeping, your business can closely monitor its financial capabilities and journey toward heightened profits,
breakthrough growth, and deserved success.

3. Methods Of Bookkeeping
 Single-entry bookkeeping – Single-entry bookkeeping is a straightforward method where
one entry is made for each transaction in your books. These transactions are usually
maintained in a cash book to track incoming revenue and outgoing expenses.
 Double-entry bookkeeping – The double-entry system of bookkeeping requires a double
entry for each financial transaction. The double entry system provides checks and balances
by recording corresponding credit entry for each debit entry. The double-entry system of
bookkeeping is not cash-based. Transactions are entered when a debt is incurred or
revenue is earn.
Proper bookkeeping gives companies a reliable measure of their performance. It also provides
information to make general strategic decisions and a benchmark for its revenue and income
goals. In short, once a business is up and running, spending extra time and money on maintaining
proper records is critical.
Before you begin bookkeeping, your business must decide what method you are going to follow
depend on the volume of daily transactions your business has and the amount of revenue you
earn. Many small companies don’t actually hire full-time accountants to work for them because of
the cost. Instead, small companies generally hire a bookkeeper or outsource the job to a
professional firm. If you are a small business, less robust methods of bookkeeping will
suitable for you. On the other hand a complex bookkeeping method designed for large
corporations.

4.  Cash-based – In cash-based, any time cash enters or
exits your accounts, they are recognized in the books.
Which means you recognize both revenue and expenses.
In general however, purchases or sales made on credit
will not go into your books until the cash exchanges.
 Accrual-based – In the accrual method, revenue is
recognized when it is earned and expenses are recorded
when they are incurred. The actual cash does not have to
enter or exit for the transaction to be recorded. You can
mark your sales and purchases made on credit right away.
Both a cash and accrual basis can work with single- or double-
entry bookkeeping. However, the single-entry method is the
foundation for cash-based bookkeeping. Transactions are
recorded only when cash is actually received or paid. On the other
hand, The accrual basis works better with the double-entry system.
Transactions are recorded when it occurs, even if cash is not
received or paid.

5. BOOKEPER
FUNCTION
Record transactions
using accounting software,
spreadsheets, and databases
Collect and organize financial
records, cash flow statements, bank
documents, and loss statements
Generate invoices and receive
payments from customers
Track debits and credits for
various accounts.
Completing payroll functions.
Bookkeeping tasks provide the
records necessary to understand
a business’s finances as well as
recognize any monetary issues
that may need to be addressed.
Proper planning and scheduling is
key since staying on top of
records on a weekly or monthly
basis will provide a clear overview
of an organization’s financial
health.

6. 6
A budget creates a financial road map for your
business. With a budget, you can plan for future
expenses and the anticipated resources that would
cover those expenses. When income and expenses
are correctly organized, it makes it easier to review
financial resources and costs.
It is the bookkeeper’s job to ensure that the
business is paying adequate tax, wages and
National Insurance contributions are kept up
to date, with every important transaction
appropriately recorded to prevent any
discrepancies with previously submitted tax returns.
Bookkeeping helps to make the cash flow
management useful as it depicts the sources from
where the cash flows are coming and use where
cash is spent. Many businesses get hit by
unexpected cash crunch which can only be
resolved through bookkeeping.
BUDGET
LEGAL OBLIGATION
CASH FLOWS
In analyzing your financial statements,
you can easily manage your profit and loss.
By practicing bookkeeping, you can assess your
business performance and identify your
strengths and weaknesses..
ANALYSIS
Failure to keeping tax affairs updated may
lead to serious repercussions and huge fines
and litigations. Hence, to avoid such fines and
litigations, bookkeeping plays a pivotal role to
provide the required date in a well-presented
manner and on a timely basis.
TAX
Many businesses rely heavily on investors to help
their business grow and become successful, but
these investors need to know that their money is in
the right place. Bookkeeping ensures that investors
can access detailed reports about the company’s
financial status in order that they can feel confident
in their investment.
INVESTORS
Six Reason Why
Bookkeeping is important
1
2 3
4
5
6

7. 7
THANK YOU
ACCOUNTING I CONSULTING I TAX