Many people often confuse bookkeeping with accounting, that is why today we are going to clarify these concepts. Accounting is a much broader concept which involves the analysis and interpretation of the information provided by the accounting books and financial statements, on the other hand bookkeeping is indispensable for accounting because without it it is impossible to collect the information in an optimal and clear way.
The bookkeeping is the process of recording accounting operations in the accounting books, it also manages to take existing values in the accounting supports that support the realization of the economic facts, and consign them in the different accounting books, in other words it can be defined as the mechanical process of recording accounting information in the system.
It is necessary to contact a bookkeeper for the bookkeeping management to be a success, this is the person who is in charge of recording financial transactions of the business in the accounting books on a daily basis, for each transaction there must be a document that describes it, for example with an invoice, a receipt, a payment from the supplier, bank payments, etc.
Some mandatory books are:
Inventory Book and Annual Accounts. It consists of:
Opening Balance Sheet.
Trial Balance.
Closing Inventory of the fiscal year.
Annual Accounts with:
Balance Sheet.
Profit and Loss Accounts.
Statement of Changes in Net Equity.
Statement of Cash Flows.
Annual Report.
Journal. The operations are recorded chronologically.