Here’s a list of basic bookkeeping terms and concepts with simple explanations to help you understand their importance: Bookkeeping Terms 1. Transaction – Any exchange of money, goods, or services between two parties. Examples include sales, purchases, payments, or receipts. 2. Account – A record summarizing all transactions related to a specific type…
Bookkeeping is the process of recording, organizing, and managing the financial transactions of a business. It involves maintaining accurate records of all income, expenses, assets, liabilities, and equity. Bookkeeping serves as the foundation for financial accounting and reporting, enabling businesses to track their financial performance, meet regulatory requirements, and make informed decisions. Key Activities in…
When you’re running a small business, it can be easy to overlook some aspects of accounting. However, poor accounting practices can lead to serious financial issues down the road, such as tax problems, cash flow difficulties, or even business failure. To help ensure your small business stays financially healthy, here are some of the most…
