Specialized Bookkeeping

Bookkeeping is the process of keeping track of a business’s financial transactions. These services include recording what money comes into and flows out of a business, such as payments from customers and payments made to vendors. While bookkeepers used to keep track of this information in physical books, much of the process is now done on digital software.

Types of bookkeeping

There are several types of bookkeeping that bookkeepers perform. Two of the most common are single-entry bookkeeping and double-entry bookkeeping.

Single-entry bookkeeping records all transactions in just one row. Typically, single entry bookkeeping is suitable for keeping track of cash, taxable income, and tax deductible expenses.

Double-entry bookkeeping records all transactions twice, usually a debit and a credit entry. Typically, double-entry bookkeeping uses accrual accounting for liabilities, equities, assets, expenses and revenue.

While single-entry bookkeeping is simpler, double-entry is more thorough and less likely to produce errors.