Bookkeeping involves the recording, storing and retrieving of financial transactions for a company, nonprofit organization, individual, etc.

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 reports.

Today bookkeeping is done with the use of computer software. For example, QuickBooks (from Intuit) is a low-cost bookkeeping and accounting software package that is widely used by small businesses in the U.S.

Bookkeeping requires knowledge of debits and credits and a basic understanding of financial accounting, which includes the balance sheet and income statement.

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