The word Book represents a “Box”, whereas the word keeping represents a “Lock”. Number is a treasure which is kept and lock in a box. Business financial record is vital, and it is kept under security. And, in accounting terms a book represents a “Ledger” whereas keeping represents “Recording” information into an accounting ledger.
Hard Ledger vs Soft Ledger vs Ledger on Cloud
A hard ledger represents a tangible book to record business activities, whereas soft ledger is software which is intangible and downloaded to a computer. The information technology has made bookkeeping easier and now rather than using hard or soft ledgers a user maintains bookkeeping on a cloud and simply need an internet connection to connect with specific website to update business activities or extract accounting reports from anywhere.
Bookkeeping is the combination of many vouchers
- Supplier Invoice
- Customer Invoice
- Cash Received Voucher
- Cash Payment Voucher
- Write a Check
- Transfer Voucher
- Journal Voucher
- Debit Memorandum
- Credit Memorandum
Bookkeeping extracts financial reports
- Income Statement
- Balance Sheet
- Trial Balance
- General Ledger
- Cash Flow Statement
- Comparative Reports
Bookkeeping provides aging and account reconciliations
- Accounts Receivable Aging Report
- Accounts Payable Aging Report
- General Ledger Reconciliation Report
Bookkeeping is a store where the information is saved to restore.
