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    Introduction To Bookkeeping

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    fauzi villegas
    Bookkeeping involves recording a business's financial transactions and preparing regular reports on its finances. While evidence of bookkeeping dates back thousands of years, modern practices were established in the 15th century with Luca Pacioli's documentation of the double-entry system. The key aspects of bookkeeping include tracking accounts, assets, liabilities, equity, revenue, and expenses using tools like ledgers, journals, and charts of accounts to record transactions. Bookkeeping provides raw financial data, while accounting analyzes this data to produce reports on financial performance and compliance for tax purposes.

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    Introduction To Bookkeeping

    Uploaded by

    fauzi villegas
    219 views11 pages
    Bookkeeping involves recording a business's financial transactions and preparing regular reports on its finances. While evidence of bookkeeping dates back thousands of years, modern practices were established in the 15th century with Luca Pacioli's documentation of the double-entry system. The key aspects of bookkeeping include tracking accounts, assets, liabilities, equity, revenue, and expenses using tools like ledgers, journals, and charts of accounts to record transactions. Bookkeeping provides raw financial data, while accounting analyzes this data to produce reports on financial performance and compliance for tax purposes.

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    Introduction to Bookkeeping (1)

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    Bookkeeping involves recording a business's financial transactions and preparing regular reports on its finances. While evidence of bookkeeping dates back thousands of years, modern practices were established in the 15th century with Luca Pacioli's documentation of the double-entry system. The key aspects of bookkeeping include tracking accounts, assets, liabilities, equity, revenue, and expenses using tools like ledgers, journals, and charts of accounts to record transactions. Bookkeeping provides raw financial data, while accounting analyzes this data to produce reports on financial performance and compliance for tax purposes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    219 views11 pages

    Introduction To Bookkeeping

    Uploaded by

    fauzi villegas
    Bookkeeping involves recording a business's financial transactions and preparing regular reports on its finances. While evidence of bookkeeping dates back thousands of years, modern practices were established in the 15th century with Luca Pacioli's documentation of the double-entry system. The key aspects of bookkeeping include tracking accounts, assets, liabilities, equity, revenue, and expenses using tools like ledgers, journals, and charts of accounts to record transactions. Bookkeeping provides raw financial data, while accounting analyzes this data to produce reports on financial performance and compliance for tax purposes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Introduction

    to
    Bookkeeping
    Topics:

    What does bookkeeping involve?


    What’s the end product?
    And how does it compare to
    accounting?
    Bookkeeping definition
     Bookkeeping is the practice of recording and tracking the
    financial transactions of a business. Bookkeepers regularly
    summarise this activity into reports that show how the
    business is doing. They may also perform wider tasks such
    as invoicing, paying bills, preparing tax returns, monitoring
    key performance indicators, and providing strategic advice.
    History of bookkeeping
     Evidence of financial record keeping has been found in Mesopotamia, Babylon,
    Sumer and Assyria as far back as 7000 BC. Archives have been discovered,
    showing the recording of accounts from farm produce in ancient Greece as well
    as from the Roman Empire.
     But it’s in the 15th century that the roots of modern bookkeeping can be found.
    And fittingly, there are two entries in the history books for who documented the
    double-entry system. Some credit Benedetto Cotrugli and his 1458 book Of
    Commerce and the Perfect Merchant. But most regard Luca Pacioli as the father
    of bookkeeping, for his 1494 book Review of Arithmetic, Geometry, Ratio and
    Proportion.
    History of bookkeeping
     An Italian mathematician and Francisan monk, Pacioli wrote the first
    popular description of the double-entry system and the use of various
    bookkeeping tools such as journals and ledgers. His book became the
    teaching tool for bookkeeping and accounting for the next several
    hundred years. Bookkeeping became a recognised profession in the
    UK and US in the 1800s.
    An introduction to bookkeeping basics

    Here are some basic bookkeeping concepts and definitions that you should know.
    They’re central to the methods and processes that a bookkeeper follows to create
    accurate accounts:
     Ledger: The place where business transactions are recorded and categorised
     Accounts: The categories under which all business transactions fall
     Assets: Things the business has bought and owns (or part-owns), inventory, and
    money owed to the business as accounts receivable
     Liabilities: Amounts the business owes in unpaid bills, taxes,
    wages, or loans
     Equity: Money introduced and withdrawn by the owner or
    shareholders
     Revenue: Money coming into the business through sales, interest or
    dividends
     Expenses: Money paid out to keep the business running
     Financial statements: Reports that shows the financial activities
    and performance of a business – two main ones are the balance sheet
    and profit and loss statement
     Balance sheet: Lists the things your business owns and their value,
    plus the amounts your business owes
     Profit and loss (P&L) statement: Totals the revenue and expenses
    for a set period of time and demonstrates how the business is
    trading
     Chart of accounts: A list of all the accounts you use to record
    financial transactions in your ledger. They’re also called general
    ledger codes.
     Journal entry: The name given to any record made in the accounts
    The difference between bookkeeping
    and accounting
     Bookkeeping traditionally refers to the day-to-day upkeep
    of a business’s financial records. Bookkeepers used to
    simply gather and quality-check the information from
    which accounts were prepared. But their role has expanded
    over time, and we’ll look at how in the next chapter.
     Accounting refers to the analysis, reporting and summarizing of the
    data that bookkeepers gather. Accounting reports give a picture of
    the financial performance of a business, and determine how much
    tax is owed.
     An accounting degree requires deep education and training in tax
    and other laws with which businesses need to comply, plus finance
    and business management. While some bookkeepers may have
    developed similar skills, that level of training isn’t required to be
    called a bookkeeper.
    Thank you for listening!

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