Bookkeeping is the process of recording financial transactions of a business in an accounting system and the creation of reports.
ADVANTAGES
- A good bookkeeping system is a safeguard against persistent internal theft
- Bookkeeping enables a business to identify the moment of money
- This financial data – provided by an accurate bookkeeping system –helps manager in making daily business operating decisions
- Helps in Tax Prediction
- Bookkeeping helps in business analysis.
Documents required for bookkeeping
- Trust accounts bank statements with cancelled cheques.
- General accounts bank statements with cancelled cheques.
- Invoices to clients.
- Bills from suppliers.
- Bank deposit slips/ book
- Credit card statements and receipts
- Cash expense (out-of-pocket expenses) receipts
- Merchant accounts statements if you accept credit card from clients.