It is a part of accounting finance. In book keeping, a record of every transaction is noted down. The transaction includes the purchase of the raw material or cost of the service provided, transportation cost, the cost to convert raw material to finished good, sales of the finished goods or sale of service, payment received of the finished goods or service provided to the customer etc.
A special segment in accounting delivers the knowledge of rules and procedure to maintain book keeping. Book, where transactions are noted, is called ledger. In an organization everybody maintains a different ledger like suppliers ledger, customer ledger, general ledger- it is maintained by the accountant of a company.
The accountant needs to mention every transaction in the ledger although the mode of payment can be different. A person can pay either by cash or credit. Book keeping can be divided into two unit based on the way of entry is done: –
2 units of Bookkeeping:
- Single entry book keeping system –
Every entry is done on one side of the ledger. Many small enterprises like to maintain single entry book keeping. It is a simple way of tracking the transactions and expenses are less as compared to the double entry system. Calculation of profit and loss is easy in single entry book keeping system.
- Double entry book keeping –
Entry of asset and liability is separate in two different columns. It is widely used in many countries. Medium level and high-level industries prefer double entry system. It is more reliable and simple to maintain. There are rules and regulations to maintain double entry book keeping.
Significance of learning book keeping
Book keeping homework answer helps a lot in understanding the concepts.
- Opening a business is a great achievement as well a risky part of your life. Many businesses get ruin because of lack of knowledge of basic finance and techniques which will help them in keeping the records of the transactions. Maintaining the record is very important in business. It helps to keep the record of asset and liability at the certain time period. Cash flow and capital management help an owner of the business to decide various financial decisions and ways to invest the money. Book keeping homework answer helps a person to learn the basics of the finance. These organizations provide online lecture help to the person. A person who delivers the lecture is excellent in their field.
- Taxation is a major issue for any person. Professionals or businessman, every person is busy in saving his/her tax. For proper tax filing and saving the optimal amount of tax, one need to know about his/her asset and liabilities. He/she should be updated on the tax reform of the country.
He/she should know about the investment which can help them in getting a tax rebate. For such knowledge, people take finance as their study subject. But to manage both business and job with the study is a difficult task. Also, it happens that teacher is not able to make you learn the basics of the finance. Book keeping homework answer helps people to complete their homework and also help them to understand the concept of book keeping.
- Contacting clients is a difficult task but making them a potential investor is next to the impossible You need to prepare a great financial plan to make a client realize that your business has a future. You can show them the potential your business has if you can calculate the capital management and cash flow in the future terms.
For preparing a future plan of success, one should understand the strategic financial decision which will help the person in getting a good amount of return on investment. Book keeping homework answer will help the person by providing notes prepared by a person who has enough knowledge to make you understand the minute detail of any financial topic. These notes will help you to take good financial strategic decision for better future of your company.
- Law checks on every business and person so that they can’t cheat another person. This cheat causes huge loss for other people who are investors as well for the family members who are dependent on the investor. Here comes the role of government. They keep on setting some rules or company guidance according to which a company should run the process. The government keeps on implementing new and revised laws to further check on the companies.
When a person starts a company, it is very difficult for him to check on laws and various forms he/she need to fill and various regulations, they need to follow. Book keeping homework answer subscription helps a person in getting information and new updates regarding rules and regulation implemented by the government. Thus it helps you by saving your time, which you will spend while searching for rules and regulations.