22 Jul

We often hear many terms and words on the daily basis. right? But have you ever thought of looking deep into such words? 

Well, If you ask me, then whenever I hear a common combination of words that represent deep meaning I just scorch the whole internet to search about it and know more about it. 

Like book-keeping, Do you about this combined word "book" & "Keeping? If you don't know then don't worry about it, I will tell you all about book-keeping in detail.

What is book-keeping? 

Book-keeping is the process of keeping all your books in a cupboard in an arranged manner. Right? No! not at all. The meaning of Book-keeping is not as its single words represent. 

The exact definition of book-keeping is, if an organization has distorted financial data, then an accountant arranges that data into a meaningful ordered manner. 

This data is then used further for the process of accounting and to understand it easily by any human being. 

Bookkeeping is not an easy task that why if you have a brand or an organization the prefer taking bookkeeping services in the USA

There are mainly two methods of bookkeeping 

1. Double-entry book-keeping: This is the best method of recording data and transactions and it is accepted by many big brands. In this method, it is associated with two accounts, from the account where debit happened and from the account where credit happened. 

2. Single entry book-keeping: The name itself suggest that it only manages one single account which means it will record and arrange the data of a single account whether it is credited or debited. 

What are the main objectives of bookkeeping? 

There are mainly three objectives of bookkeeping which are listed below. To record the transaction: To Record and manage all the transactions of an organization in a systematic manner. It is the most important objective of bookkeeping. 

To find out financial effect: If an organization is facing any issue financially then this objective of bookkeeping helps them to see and manage all the transactions that affected their company. 

To show the correct position: Bookkeeping shows the correct position of the business, concerning the income and expenditure, assets, and liabilities.


In this article we have discussed nearly all the aspects of bookkeeping and why it is important for your business and organization. 

Objectives of bookkeeping really need to keep in mind as it helps accountants to manage the account also your organization to save you from any financial breakdown.

* The email will not be published on the website.