Accounting & Bookkeeping: An Overview
Accounting and bookkeeping are essential financial functions in any business, ensuring accurate records of financial transactions, compliance with regulations, and informed decision-making.
What is Bookkeeping?
š Bookkeeping is the process of recording financial transactions, organizing them systematically, and maintaining accurate financial records. It forms the foundation of accounting.
Key Tasks in Bookkeeping:
- Recording daily financial transactions (sales, purchases, expenses, etc.)
- Managing accounts payable and receivable
- Reconciling bank statements
- Preparing financial statements like balance sheets and income statements
- Using accounting software like QuickBooks, Xero, or Tally
What is Accounting?
š Accounting is the broader process of interpreting, analyzing, summarizing, and reporting financial data. It helps businesses understand their financial health and plan for the future.