Chapter 2

Getting Down to Bookkeeping Basics

In This Chapter

arrow Keeping business records

arrow Getting to know the lingo

arrow Navigating the accounting cycle

arrow Understanding accrual accounting

arrow Making sense of double-entry bookkeeping

arrow Clarifying debits and credits

All businesses need to keep track of their financial transactions, which is why bookkeeping and bookkeepers are so important. Without accurate records, how can you tell whether your business is making a profit or taking a loss?

In this chapter, we cover the key aspects of bookkeeping: we introduce you to the language of bookkeeping, familiarise you with how bookkeepers manage the accounting cycle and show you how to understand the more complex type of bookkeeping – double-entry bookkeeping.

Bookkeeping: The Record-Keeping of the Business World

Bookkeeping, the methodical way in which businesses track their financial transactions, is rooted ...

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