Different Types and Methods of Bookkeeping Systems

Bookkeeping is the recording of financial transactions and which is part of the process of accounting in business. There are several standard systems of bookkeeping which include,

  1. the single-entry bookkeeping system and the
  2. double-entry bookkeeping system,

While they may be referred as real bookkeeping to any process that involves the recording of financial transactions.

Therefore, bookkeeping is usually performed by a bookkeeper- who is a person who records the day-to-day financial transactions of a business. Bookkeeper is usually responsible for writing the daybooks which contain records of purchases, sales, receipts, and payments and he or she is responsible for ensuring that all transactions whether it is cash transaction or credit transaction are recorded in the correct daybook, supplier’s ledger, customer ledger, and general ledger. The bookkeeper also brings the books to the trial balance stage where an accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.

There are different types of bookkeeping systems that range from maintaining records, auditing to preparing income tax returns such as the following;

  1. Financial accounting:

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