Bookkeeping is the heart of accounting and all financial processes will be enter by bookkeeping operations and it could be done by hand or by computerized systems in local P.C or online server.

What is Bookkeeping

Bookkeeping has two words: 1- Book 2- keeping, so it means arranging books!. but what type of book?. books in library? no!. The term of book here points to books of accounts. to record correctly financial process you should relating them to accounts in a collection named book of accounts.

What are Books of Account

The ledger is the primary books of account, so called because all transactions, are grouped in accounts of ledger. Usually a  collection of accounts including lists of debtors, creditor, supplier, customers, source of incomes, expenses,.. available in books of accounts., therefore bookkeeping means recording vouchers in books of accounts. Almost all business are trading or offer their services on credit basis, so they should record any transactions even a small amount of money in books of accounts on-time and without any mistakes to have a clear, accurate and up-to-date financial statement. It will protect the business from bankruptcy also !. As experiences of accountants, in some business, small amounts will be increased in silence and suddenly will show in a big amount of debit!.


Getting Started

In order to understand accounting, it is necessary to understand bookkeeping, and in order to understand bookkeeping it is necessary to understand the basics. This section of site explain the basic principles:

  • What is bookkeeping
  • The importance of bookkeeping
  • Single entry bookkeeping
  • The concept of double entry bookkeeping
  • Three basic rules of double entry bookkeeping
  • Two examples of double entry bookkeeping postings