Bookkeeping Guide

The Balance Sheet

A balance sheet is a picture of the financial condition of a business at a specific point in time. The activities of a business fall into two separate groups that are reported by an accountant. They are profit-making activities, which includes sales and expenses. This can also be referred to as operating activities. There are also financing and investing activities that include securing money from debt and equity sources of capital, returning capital to these sources, making distributions from profit to the owners, making investments in assets and eventually disposing of the assets.
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Bookkeeping Systems For Different Businesses

The type of business you are in will affect the type of records you keep in a number of ways. Whatever system of bookkeeping you use, the details will have to be adapted to your special needs. It is important to have all the information you need for your own use in managing the business and for tax purposes. At the same time, your records should not be cluttered with details that aren’t really necessary.
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Bookkeeping Basics

Most people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers.

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