Book Keeping

Book Keeping

The book keeping is a process for creating a detailed financial record of a company’s business transaction especially its sales and purchases and preparation of statement concerning assets and liabilities.

Why Book Keeping? Bookkeeping requires careful

records of every expenditure as well as all the income that the office makes. These records should always be kept up to date and carefully balanced regularly to ensure that no errors have been made. It is also used to keep track of any losses that the business incurs, as well as yearly profit. This information is also used for tax purposes.

Better Book Keeping gives better financial analysis & management

Why book keeping need higher accuracy?

Book Keeping records – determines tax

Accurate Book KeepingYearly loss and profit report is used for tax purposes. So should be very careful to do office bookkeeping for tax purposes as this determines the amount of tax that the business owes. The Internal Revenue Service may request the bookkeeping records to resolve any discrepancies on a filed tax return. It will lead to serious legal consequence if the records are not accurate.

Save Money with proper Book Keeping

Single Entry Book Keeping

A simple methods of accounting, in which a single line is used to record each transaction. This system of recording does not separate the revenue and expenses by headings or columns.

Single Entry Book Keeping

Double Entry Book Keeping

In Double Entry book keeping, every transaction has two parts and it will affect two ledger accounts. The transaction includes a credit entry in one account and a debit entry in another account. The sum of debits and sum of credits must be equal always. If the sum of credits and debits are not equal, then an error has occurred. Error detection is easier in this method of book keeping.

Better Error Detection in Double Entry Book Keeping

Day Book

What is a Day Book

This is a simple journal that is used to record day-to-day financial transactions and it normally includes details such as time, date, and the basic data regarding an event.

Day Books – Six Different Types

Different Types of Day Book

1. Cash Daybook2. General Journal Day Book3. Purchase Day Book4. Purchase Debit Day Book5. Sales Day Book 6. Sales Credit Day Book

A Ledger is a book used to input accounting records. There are three types of Ledgers.

•General Ledger•Purchase Ledger•Sales Ledger

Cash Day Book

Cash Day Book

Cash Day Book is categorized as follows.

1. Receipt Day Book – to record received money

2. Payment Day Book – to record money paid out

Purchase daybook – Record Purchase invoices.

General Journal Day Book - used to record journals.

Purchases Debits daybook – Record Purchase Debit notes

Sales credits daybook – Record Sales Credit notes.

Sales daybook – Record sales invoices.

What is a Journal

A journal is a chronological record of financial transactions before their values are accounted as credits and debits.

Petty Cash : Used to record small value purchases such as postage, maintenance, office stationery etc.

Business Planning and Reporting to investors easy with proper book keeping

The Balance Sheet Inc.(Accountants In West Palm Beach)

801 Northpoint Parkway,Suite 6

West Palm Beach,FL 33407

Tel: (561) 501-3080 Fax: (855) 460-1629