Bookkeeping is a procedure of maintaining transactions and accounts of a company or a business. It involves keeping all necessary records of commercial transactions. The person who is in charge of this occupation is called a bookkeeper. It is known that this word was first used in 1555. A bookkeeper is defined as a person who makes records of all the financial issues of a firm or merchandise.
There are two types of bookkeeping that are carried out in organizations. One type is called ‘the single entry bookkeeping system’. It is a method that depends on partial accounting entries for bookkeeping. However, the second type which is known as ‘the double entry bookkeeping system’, involves a procedure in which each entry to some account demands a corresponding and contrary entry to a different account. Bookkeepers also have ‘daybooks’ in their possession which help them in recording every transaction and analysis in different accounts. These records must be kept safe for a period of about 5 years. However, payrolls are required to be kept safe for about 7 years. These records are extremely essential for the company. They are not only used to estimate sales of the company but also used to take future steps for the prosperity of the corporation.