Bookkeeping

 Process of keeping track of every financial transaction.

 From the opening of the firm to its closing
Examples of supporting documents:
 Official Receipt (service)
 Purchase Order
 Sales Invoice (goods)
Bookkeeping Accounting
Output of book is input of Output of account permit informed judgements ad
account decisions by the user of the info
Purpose is to keep systematic record of To fins results of operating ctivity
transactions
Foundation of accounting Is considered as a language of
business
Is carried out by a junior staff Done by senior staff with skill of analysis
and interpretation
Its object is to summarize the cumulative Not only bookkeeping but also analyzing
effect of all economicstransactions and interpreting reported financial
transactions
COMPONENTS OF BOOKKEEPING
1. DOCUMENTING EVERY FIANANCIAL TRANSACTION (PAYMENTS
AND EXPENSES)
2. RECORDING ALL DEBITS AND CREDITS
3. SENDING INVOICES AND PROCESSING PAYMENTS
4. PREPARING FINANCIAL STATEMENTS
5. MAINTANING AND BALANCING A GENERAL LEDGER
6. CONDUCTING DAILY BANKING ACTIVITIES
Bookkeeping responsibilities Accounting responsibilities
Record financial trasactions Review and analyze FS
Post debits and credits Prepare adjusting entries
Prepare FS Perform audits
Process Payroll File relevant tax returns

ACCOUNTING CYCLE
1. IDENTIFY TRANSACTION
2. PREPARE JOURNAL ENTRIES
3. POSTING OF THE ENTRIES IN THE GENERAL LEDGER
4. PREPARE TRIAL BALANCE
 5. MAKE ADJUSTING ENTRIES
6. REVIEW ADJUSTED TRIAL BALANCE
7. PREPARE FINANCIAL STATEMENTS
8. COST CLOSING ENTRIES
9. REVIEW POST-CLOSING TRIAL BALANCE
10.REVIEW JOURNAL ENTRIES

FINANCIAL STATEMENTS
1. INCOME STATEMENT
2. BALANCE SHEET
3. STATEMENT OF CASH FLOWS
 DIRECT METHOD (OPERATING, INVESTING, AND FINANCING)
 INDIRECT METHOD (STARTS WITH NET INCOME + DEPRECIATION
+/- AR AND +/- AP)

BOOKKEEPING IN EXCEL
 BOOKKEEPING USING EXCEL (HAYST)
 SINGLE ENTRY- RECORD ONLY ONE SIDE OF THE TRANSACTION,
AND THE EFFECT OF THESE TRANSACTIONS GOES TO ONLY ONE
PLACE

ADVANTAGES OF BOOKKEEPING
1. EASY TO RECORD TRANSATIONS
2. LESS EXPENSIVE
3. HAS VARIOUS FUNCTIONS THAT QUICKLY RECORD
TRANSACTIONS
4. HELPS CREATE NUMEROUS GRAPHICAL PRESENTATIONS
5. MULTIPLE USERS IN AN OFFICE CAN ACCESS