What is bookkeeping?
Bookkeeping is the art of recording business transactions in a systematic manner. However, bookkeeping has been defined in a variety of ways by different authors. Some of the definitions are given below:
- Bookkeeping is an activity concerned with the recording of financial data related to the business operations in a significant and orderly manner.
- The part of accounting that is concerned with recording data is often known as bookkeeping. (Frank wood)
- Book-keeping refers to the daily operation of an accounting system that is recording and classifying routine transactions. (Meigs & Meigs)
So, in simplified words “Bookkeeping” is an art of recording the business transactions in a prescribed manner in the books of accounts.