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bookkeeping process
bookkeeping process
Accounting and its development

In the late eighteenth century AD, the world witnessed a renaissance in all sectors, and one of the most important features of this renaissance was the rise of the industrial revolution, which increased the importance of regulating financial operations, and finding a way to monitor and control the activities of companies and document them historically, and presented them to the concerned authorities, whether This was at the level of the commercial, industrial or governmental sector, and governments were also interested in following up the commercial operations carried out by companies in order to determine the values ​​of taxes owed on them, and all this paved the way for the emergence of the so-called bookkeeping process, and in this article information about the bookkeeping process will be addressed.

bookkeeping process

The concept of bookkeeping in financial accounting is called that organized process through which all operations related to the company's activities are recorded in detail according to the accounting basis that is approved by the financial accountant, and this accounting process is pivotal in accounting science because the preparation of all subsequent reports and financial statements It depends on the operations of recording the financial activities that took place in the company during the previous accounting periods. Examples of the operations that are recorded in the accounting books are sales operations, purchases, and the income that the company obtains from its existing business activity.

The bookkeeping process may be done manually through daily recording, or some accounting programs may be relied upon that facilitate the accounting recording process. One of the most prominent programs that are used in bookkeeping operations is the QuickBooks accounting program, and the use of accounting programs during bookkeeping operations contributes to reducing the amount of Errors that occur during manual registration of material amounts.

Bookkeeping and double entry

The financial operations that pertain to the daily activities of the company are recorded by the financial accountant in a manual way or by accounting software through what is known as the double entry system, which depends on the presence of two accounts in the general ledger, where one of these accounts is recorded with the actual amount in The credit side, and the other account is placed in the debit side of the entry, provided that the totals of the credit side are equal to the totals of the debit side, as there are two effects for each amount related to a specific business activity, one of which relates to an increase in the account balance that is recorded on the credit side, and the other increases the value of the account in The debit side, for example, the company borrowing a sum of money from one side. In this case, the cash balance increases as a result of the supply of cash from the borrowing process. On the other hand, the balance that expresses the company’s obligations increases with the same cash value on the other side of the double entry according to the accounting equation that It states that assets equal liabilities plus equity.
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