Talk about the Definition of Bookkeeping
Keeping track of income. Keeping track of expenses. Keeping track of debts. Keeping track of debtors. Basically, this is the definition of bookkeeping. Officially though, the definition of bookkeeping involves the "act of recording financial transactions which an individual or an organization is accountable for, as well as the expected income that is heading towards the individual's or organization's way". Basically the definition of bookkeeping entails it to be the act of keeping track of one's expenses.
Think of bookkeeping and the definition of bookkeeping this way: it is the act of keeping tabs on how much one had spent, how much one had earned, how much was lost, how much was gained. Another more loose definition of bookkeeping could be coined from the bookkeeping name, as bookkeeping being the act of "keeping" records of what is sold, keeping records of what is bought, and all that.
In using the definition of bookkeeping, the act could be preformed by using a paper, a pen or a pencil. Oftentimes a ledger is being utilized, as these could be stored, and could be easily organized, easy to refer to should there come questions regarding the financial expenditures which one would incur. With the now prevalence of increasingly complex tax laws, as well as the development of powerful computer systems with top-of-the-line security features, it isn't surprising to note that there are a number of bookkeeping software, from various software makers including those from Microsoft's business productivity line of software solutions. Mind you, these programs and applications aren't exactly designed to do all the bookkeeping work for you, but are rather there to assist users in their bookkeeping excursions, applying either the single entry or double entry bookkeeping styles which many bookkeepers apply in their bookkeeping tasks and duties.
Bookkeeping could involve keeping track of the savings account passbook of a person or an organization, the ATM transactions of a person or organization, or the checking account register of an organization or a person. Be it for a private individual, a charitable organization, or business, bookkeeping is an ideal staple activity with people should employ, in an effort to control their expenditures, maximizing their income savings potentials.
The definition of bookkeeping isn't exactly the hard part. In fact the definition of bookkeeping stands to be one of the easier aspects of bookkeeping. It is the bookkeeping itself that proves to be quite a challenge, considering the many rules to follow when talking about a bookkeeping activity.
