What is Bookkeeping?

Bookkeeping is the recording of financial data of a business or organisation. Financial data refers to the actual accounting transactions undertaken by the business, e.g. a business will sell and purchase goods and services, pay expenses or might incur wages and salary costs for employees.

The financial transactions are first recorded and analyzed in the books of prime entry, which are then totalled and posted to the subsidiary and general ledgers.

Bookkeeping is distinct from accounting which is usually undertaken by more senior staff. The purpose of the book-keeping process is to record financial transactions. The output from the bookkeeping process then becomes the input for the accounting process, which is the language of business used to interpret and analyse the information.

For further information on Book-keeping see the Wikipedia definition.

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Last modified February 7th, 2017 by Team

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