What is Bookkeeping

 

Bookkeeping is to be understood in the context of a business. It is simply the recording of financial transactions. Transactions include purchases, sales, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Many individuals mistakenly consider bookkeeping and accounting to be the same thing. This confusion is understandable because the accounting process includes the bookkeeping function, but is just one part of the accounting process.[1] The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies. There are some common methods of bookkeeping such as the single-entry bookkeeping system and the double-entry bookkeeping system. But while these systems may be seen as “real” bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.

bookkeeper (or book-keeper), also known as an accounting clerk or accounting technician, is a person who records the day-to-day financial transactions of an organization. A bookkeeper is usually responsible for writing the “daybooks”. The daybooks consist of purchases, sales, receipts, and payments. The bookkeeper is responsible for ensuring all transactions are recorded in the correct day book – suppliers ledger, customer ledger and general ledger.

The bookkeeper brings the books to the trial balance stage. An accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.Bookkeeping-Services9

 

Courtesy of Wikipedia.com

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About Sherry Wegner

Sherry is state licensed in Property and Casualty Insurance. She also holds Life and Health Insurance licenses. Sherry is a member of the Crop Insurance Professional Agents and the National Association of Crop Insurers. She also sits on the Advisory Board for the American Association of Crop Insurers. In addition, she is actively involved in charity work through donations to 4H Kids. The Sherry Wegner Agency is a company which offers crop insurance services to farmers and ranchers. They offer a government regulated insurance program which is marketed through private industry. Sherry is responsible for managing all major aspects of the business, overseeing the daily operations, and meeting with farmers to review financials and production records.
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