Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. It can also refer to the different recording techniques businesses can use. Bookkeeping is an essential part of your accounting process for a few reasons. What are the three types of bookkeeping? Image result for book keeping A business must use three separate types of accounting to track its income and expenses most efficiently. These include cost, managerial, and financial accounting, While bookkeeping is all about recording of financial transactions, accounting deals with the interpretation, analysis, classification, reporting and summarization of the financial data of a business.
Proper bookkeeping give businesses a reliable measure of their performance. It also provides the information to make the benchmark for their revenue goals.
As a business owner, you should understand the financial position of your business including its income or loss in order to make informed decisions.