Book keeping is defined as the process of analyzing ,classifying and recording transactions in a systematic manner to provide information about the financial affairs of a business concern.Book keeping is a part of accounting process.
Few definitions of Book keeping:
J.R. Batliboi : "Book keeping is an art of recording business dealings in set of books"
Bookkeeping involves the systematic recording of the
financial transactions and the maintenance of the correct & up-to-date
financial records of the organization by an accountant clerk. Organization can
be a business firm, charitable institute or even an association of sports.
Effective management of the Bookkeeping makes the business owners acutely aware
of the losses and the profits. To be precise, bookkeeping brings the result of
the economic activities to the surface. It is also referred as: Bookkeeping,
Book-keeping and Book keeping.
The main characteristics of book keeping are :
- Its an art
- For recording monetary transactions
- Of our own Business
- Supported by documents
- Followed universally
- To know the Business position
- To know the capital invested
- To know if business is making money or not
- To know status of receivables and payable
- To have systematic record
- To support decision making
- To review business
- To prevent fraud and facilitate decision making
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