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'Bookkeeping' (book-keeping or book keeping) is the recording of all financial transactions undertaken by an individual or organization. The organization may be a business, a charitable organization or even a local sports club. Bookkeeping is "keeping records of what is bought, sold, owed, and owned; what money comes in, what goes out, and what is left." ^[1] A financial transaction is any event that involves money.
Individual and family bookkeeping involves keeping track of income and expenses in a cash account record, checking account register, or savings account passbook. Individuals who borrow or lend money also track how much they owe to others or are owed from others.
Bookkeeping may be performed using paper and a pen or pencil. With increasing complexity in tax regulations and to minimize calculation errors, many organizations use accounting software to assist in bookkeeping.
Two common bookkeeping methods used by businesses and other organizations are the single-entry bookkeeping system and the double-entry bookkeeping system. Single-entry bookkeeping uses only income and expense accounts, recorded primarily in a "Revenue and Expense Journal". Single-entry bookkeeping is adequate for many small businesses. Double-entry bookkeeping requires posting (recording) each transaction twice, using debits and credits.^[2]
A 'bookkeeper' (or book-keeper), sometimes called an 'accounting clerk' in the United States, is a person who keeps the books of an organization.
A bookkeeper is usually responsible for writing up the "daybooks". The daybooks consist of purchase, sales, receipts and payments. The bookkeeper is responsible for ensuring that all transactions are recorded in the correct daybook, suppliers ledger, customer ledger and general ledger. The bookkeeper brings the ''books'' to the trial balance stage. An accountant may prepare the profit and loss statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.

Contents

Single account bookkeeping

Single-entry bookkeeping

Double-entry bookkeeping

Computerised bookkeeping

Online bookkeeping

Notes and references

Single account bookkeeping

Simple bookkeeping for individuals and families involves recording income, expenses and current balance in a cash record book or a checking account register.
'Sample checking account register (United States, 2003)'^[3]

¤AD-Automatic Deposit ¤AP-Automatic Payment ¤ATM-Teller Machine ¤DC-Debit Card
NUMBER OR CODE	DATE	TRANSACTION DESCRIPTION	PAYMENT AMOUNT		/	FEE	DEPOSIT AMOUNT		BALANCE
		balance forward							1227	54
AD	3/15	paycheck					1823	56	3155	41
AP	3/26	electricity	104	31					3051	10
704	3/26	car registration	58	50					2992	60
ATM	3/30	cash withdrawel	100	00		1.00			2891	60
DC	4/2	groceries	127	35					2865	25

Single-entry bookkeeping

The primary bookkeeping record in single-entry bookkeeping is the Revenue and Expense Journal, which is similar to a checking account register but allocates the income and expenses to various income and expense accounts. Separate account records are maintained for petty cash, accounts payable and receivable, and other relevant transactions such as inventory and travel expenses.
'Sample revenue and expense journal' for single-entry bookkeeping^[4]

No.	Date	Description	Revenue	Expense	Sales	Sales Tax	Services	Inventory	Advert.	Freight	Office Suppl	Misc
	7/13	''Balance forward''	1,826.00	835.00	1,218.00	98.00	510.00	295.00	245.00	150.00	83.50	61.50
1041	7/13	Printer- Advert flyers		450.00					450.00
1042	7/13	Wholesaler - inventory		380.00				380.00
1043	7/16	office supplies		92.50							92.50
--	7/17	bank deposit	1,232.00
		- Taxable sales			400.00	32.00
		- Out-of-state sales			165.00
		- Resales			370.00
		- Service sales					265.00
bank	7/19	bank charge		23.40								23.40
1044	7/19	petty cash		100.00								100.00
		TOTALS	3058.00	1,880.90	2,153.00	130.00	775.00	675.00	695.00	150.00	176.00	184.90

Double-entry bookkeeping

Main articles: double-entry bookkeeping system

Computerised bookkeeping

Computerised bookkeeping removes many of the "books" that are used to record transactions and enforces double entry bookkeeping. Computer software increases the speed at which bookkeeping can be performed.

Online bookkeeping

Online bookkeeping allows source documents and data to reside in web-based applications which allow remote access for bookkeepers and accountants. Typically, a company scans its business documents and uploads them to a secure location or into an online bookkeeping application on a regular basis. This allows the bookkeeper to work remotely with these documents to update the books. Users of this technology include

★ mobile employees scanning and sending in their receipts and bills while on the road to get reimbursed more quickly.

★ organizations with multiple offices centralizing their accounting department and having the documents sent to this location online.
Examples of online bookkeeping software include SQL Ledger and Quickbooks.

Notes and references

1. Bookkeeping Made Simple, Revised Edition, , Louis W., Fields, Doubleday, ,
2. Keeping the Books, Second Edition, , Linda, Pinson, Upstart Publishing Company, Inc., ,
3. Illustration based on transaction register provided with personal checks from http://www.deluxe.com in 2003.
4. Pinson, p.25.