Tuesday, July 3, 2018

BOOK-KEEPING


Very often, without much thinking, we consider Accounting and Book-keeping alike -which is a wrong concept. Book-keeping is the recording, on a day-to-day basis, of the economic events and information relating to a business. It is concerned with ensuring the records of all economic events or financial transactions are available, accurate, up-to-date and comprehensive. Accuracy is, however, vital to the process. Basically, Book-keeping records the financial information as well as provides them from which necessary accounts are prepared; but is a distinct process, and which is preliminary to accounting. Each transaction, whether purchase or sale; or change of loans; has to be recorded in the books.


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