What is the Process of Bookkeeping?

The process of bookkeeping involves systematic recording and organizing of financial transactions. the process begins with capturing essential data like sales, purchases, and expenses, subsequently, this data is classified into appropriate accounts, including assets, liabilities, income, and expenses. The next step is posting these entries into the company’s general ledger. Regular reconciliation of accounts ensures accuracy, and financial statements are generated to summarize the business’s financial position. Bookkeeping provides a foundation for other financial tasks like tax preparation and analysis, contributing to informed business decision- making and financial stability.

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