What is Bookkeeping?

As a business owner you are obligated to record any financial transaction your business makes, whether it is a receipt, invoice or a bill. These are the primary data which is required to prepare you financial reports which tell you exactly your business stands. 

Bookkeeping starts with these documents. After Analyzing, Classifying &  Recording, these data is Posted to General Journal to produce a Trial Balance. After a certain period Accounting adjustments like Depreciation, Accruals & Prepayments are passed to create your Financial Reports: - Income Statement, Balance Sheet, Cash Flow and Equity Statements. These are your Report Cards. They shows you how much profit you made, Your financial Position, Cash Flow Strengths and so on.

The next process in bookkeeping is closing your books for the end of the period after reconciliations.