Bookkeeping
Bookkeeping for a company cannot be ignored to run a business, in fact bookkeeping is one of the most important functions to operate a successful business. Bookkeeping is a process to maintain revenue and expense.
Bookkeeping has many unique features and a few of them are shared below:
- Bookkeeping is a part of accounting, which interpret the source of the financial transaction for an accountant, such as money was received from and why the money was paid for.
- Bookkeeping is a main source to produce any management report.
- During the bookkeeping process every financial activity is verified.
- Payroll is maintained during bookkeeping process.
- Sales tax is processed if applicable, during bookkeeping process.
Bookkeeping is the combination of the following six vouchers:
- Cash receive voucher – CRV voucher is created to record payment was received either from customer, transfer or from the other sources.
- Cash payment voucher – CPV voucher is created to record why and whom the payment was made.
- Journal voucher – A journal voucher is passed to make an adjustment in books or a CRV and CPV can not be created to record a financial transaction such as accruals.
- Transfer voucher – A transfer vouched is used to record transfer payments from one bank to another.
- Debit Memo – A debit memo is used for inter-company transfers. A debit memo voucher is used to send money to the other company.
- Credit Memo – A credit memo is used for inter-company transfers. A credit memo is used to receive payment from inter-company.
