Jan 19, 2021

Bookkeeping 101 – What is Bookkeeping – Definition & Basics

What is bookkeeping In Today’s Economy?

Bookkeeping is the recording, on a day-today basis of the financial transactions and information pertaining to a business. It is concerned with ensuring that records of those individual financial transactions are accurate, up-to-date and comprehensive. Accuracy is therefore vital to the process.

Common financial transactions and tasks that are involved in bookkeeping include:

  • Billing for goods sold or services provided to clients.
  • Recording receipts from customers.
  • Verifying and recording invoices from suppliers.
  • Paying suppliers.
  • Processing employees’ pay and the related governmental reports.
  • Monitoring individual accounts receivable.
  • Recording depreciation and other adjusting entries.
  • Providing financial report.

For each transaction, there must be a document that describes the business transaction, in the terms of a simple sales invoice, sales receipt, a supplier invoice, a supplier payment, bank payments and journals.

Today bookkeeping is done with the use of computer software. For example, QuickBooks (from Intuit- http://quickbooks.intuit.ca/) is a low-cost bookkeeping and accounting software package that is widely used by small businesses in the North America.

For more information, visit our website at https://envolta.ca/bookkeeping-services/ where there is a comprehensive list of what is bookkeeping for ENVOLTA Inc.



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