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Bookkeeping, is often referred as the record keeping, is the part of accounting that records the transactions and the business events in the form of journal entries in the accounting system.
Bookkeeping in a business firm is an important, but preliminary, function to the actual accounting function. A bookkeeper collects the documentation for each financial transaction, records the transactions in the accounting journal.
One of the first decisions you have to make when setting up your bookkeeping system is whether or not to use a cash or accrual accounting system. Its important for every business concern.