Double Entry Bookkeeping | Double Entry Bookkeeping

Time 2020-12-07 15:04:52

Web Name: Double Entry Bookkeeping | Double Entry Bookkeeping

WebSite: http://www.double-entry-bookkeeping.com

ID:126605

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Double,Entry,Bookkeeping,

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Popular Accounting TemplatesBank Reconciliation TemplateJournal Voucher TemplatePetty Cash Voucher TemplateExpense Claim Form TemplateAccounting Ratio CalculatorDouble Entry Accounting RatiosYou will find information on what are the most important accounting ratios used in managing a business.Popular Accounting RatiosAsset Turnover RatioGross Profit PercentageQuality of Earnings RatioROCE Return on Capital EmployedCreditor Days Ratio in AccountingWhat is Bookkeeping?When you set out to start a business as an entrepreneur you need to be in control of your finances and be able to track the performance of the business. The only way to achieve this is to have good accounting information and be able to understand what the information is telling you.Bookkeeping is distinct from accounting which is usually undertaken by more senior staff. The purpose of the book-keeping process is to record financial transactions. The output from the bookkeeping process then becomes the input for the accounting process, which is the language of business used to interpret and analyse the information.A Bit of History on the Double Entry Accounting SystemDouble entry bookkeeping is a system of bookkeeping which records each transaction twice. The system was first developed in the 13th century and used by Italian merchants. In 1494 Luca Pacioli a monk and mathematician was the first to publish a treatise (Summa de arithmetica) which included details of double entry bookkeeping. Pacioli recommended the Venetian method which included three books of account, the memorandum, the journal, and the ledger. The treatise was widely available and accessible and formed the basis of double entry bookkeeping practiced today.The first entry records what comes into the business (a debit) and the second entry what goes out of the business (a credit). Every Debit must have a corresponding equal and opposite Credit.Double-Entry-Bookkeeping.ComAll businesses are under pressure from all sides and only well managed businesses will survive. We started the website with one clear goal in mind to offer users a wide variety of tutorials, examples, references, and no-nonsense advice on small business bookkeeping and accounting.We aim to give you the information you need to help you understand and use your accounting records to manage your business. We make bookkeeping and accounting more usable, easier to navigate, faster and more reliable. In other words: we make your bookkeeping system records work.Whilst there are many places that you can learn double entry accounting and bookkeeping, they tend to provide you with a confusing array of information. The first rule for any business is to know what you’re doing, and what you’re aiming for. The only way to do that is to have good double entry accounting system records to provide quality accounting information and to be able to understand what that information means for your business.About the AuthorChartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.Last modified January 21st, 2020 by Michael Brown

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Double Entry Bookkeeping provides a wide variety of tutorials, examples, references, and no-nonsense advice on bookkeeping and accounting online for free.

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