What is bookkeeping?  (Part 2)

Bookkeeping is the practice of recording financial data in a systematic manner with the objective of summarizing and reporting that information to managers, owners (shareholders), tax authorities, etc.

It has been around as long as there have been people and business transactions.

Since all businesses deal with money and the inputs and outputs involve someone's personal wealth, understanding what assets an organization possesses is vital for knowing how well it is doing and whether or not it will survive.

The bookkeeper maintains those records on a daily basis by entering price/quantity combinations into specific columns in one or more journals (books of original entry).

Then they enter those numbers into ledgers (books of original entry) where they undergo further analysis such as subtotaling, totaling, balancing, etc.

Bookkeepers are the backbone of any business and have been used to maintain records for thousands of years in almost every civilization.

In ancient Rome, bookkeeping was taught as a minor subject along with arithmetic and geometry at schools in Greece from around 50 B.C. In 1300 A.D., Florence even had a guild specifically dedicated to training people for employment as accountants (a similar organization existed in Paris).

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