The Top 7 Functions of Bookkeeping

Let us see as to what are the Functions of Bookkeeping? Are you curious to know the functions of bookkeeping? Then we have the blog post as described below.

What is Book-keeping?

Here we will look into the concept of bookkeeping. We will see, what is bookkeeping in Accounting? We will discuss, what is bookkeeping?

Bookkeeping is a process that is connected with the recording of business transactions in a systematic and logical manner in the books of accounts like journals, ledgers, subsidiary books. It mainly involves the clerical work of bookkeepers of record-keeping of the business transaction.

Now let us discuss the functions of bookkeeping in detail.

The Functions of Bookkeeping are:

The following 7 functions of bookkeeping are described as below:

Collecting the financial information using source documents:

The main function is to record the business transactions. one of the important functions is to produce and compile the source documents by bookkeepers.

Recording the Transactions in Journal:

Bookkeepers main function is to record the financial transactions in the books of accounts such as journal, subsidiary books, ledgers. Thus bookkeepers record the business transactions in a systematic manner

Classifying the accounts as Debit or credit:

one of the important functions is to classify the accounts as asset, liability, income and expense by bookkeepers. All accounts are classified as asset, liability, expense and income

Maintaining books of accounts:

one of the important functions is to maintain the books of accounts by bookkeepers which include invoices, voucher, journal, ledgers, subsidiary books.

Balancing the Ledger accounts:

one of the important functions is to complete the process of balance the ledger accounts by bookkeepers. This is to ensure that all ledger accounts are balanced and ensure the accuracy of accounts.

Record and Classify accounts as Asset, Liability, Expenses, Incomes, Equity:

one of the important functions is to record and classify the accounts as an asset, liability, expenses, incomes by bookkeepers.

Payroll Accounting & producing reports:

one of the important functions is to complete the payroll accounting by bookkeepers. The function of bookkeepers also involves completing the accounting for payroll which is attributable to the salary and wages of labour

Conclusion:

Thus now we can conclude as to what are the Functions of Bookkeeping? in detail as well.

Originally published at https://charteredfinanceaccounts.blogspot.com on March 28, 2021.