What is Bookkeeping?

Bookkeeping is the actual recording of daily financial transactions, and is a part of the internal system of accounting in most businesses. Transactions include sales, purchases, receipts and payments made by an individual or an institution/corporation to another person or firm. The transactions are recorded either on the income statement of a company or the balance sheet of an individual or a company. For more information on Bookkeeping Chippenham, visit a site like https://chippendaleandclark.com/services/bookkeeping/

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A bookkeeper is someone who keeps track of every financial transaction that happens in a particular period of time. It is generally not necessary to have a degree in accounting or computer science, but it helps. Some entry-level bookkeepers, who are responsible for manually recording daily financial transactions for a small office, may do it using a spreadsheet program on their computers. However, some bookkeepers (or bookkeepers who work in bigger offices) need to use specialized software programmes. Other bookkeepers may be able to work on their own using specific software programmes, but many companies require professional bookkeepers to do the heavy lifting for them.

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If you think of a bookkeeper as someone who carefully records every financial transaction that takes place in an office, then bookkeeping is an essential process. This process is then documented in such a way that it becomes an important part of the accounting system.