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Why do I need to keep books for my business and what is the difference between bookkeeping and accounting? Bookkeeping is not just a legal requirement; it’s the lifeblood of a business’s financial health. Below are some critical reasons why bookkeeping is important for businesses: Ensures Compliance with Government Regulations Government regulations often require businesses to maintain financial records. Regular bookkeeping ensures that businesses stay compliant and avoid any

(Debits, Credits, Double Entries, T-Accounts and Trial Balance) What are debits and credits in bookkeeping terms, and what is the meaning of a double-entry and a T-Account? In any transaction there are always two issues at play — the giving and receiving of an item or service. Someone gives and someone receives something and therefore two accounts in the books of a company are always affected — one is debited and the other credited. This is what is called a double-entry . I

In Part 1 of Basic Bookkeeping Principles , we discussed the type of accounts used in bookkeeping, what debits and credits are, the use of double entries, the use of T-Accounts to help with the process of raising journal entries, the general ledger and what a trial balance is. The examples of the entries we processed in Part 1 were mainly cashflow items — meaning that they either credited or debited the bank account. There are, however, other adjusting journal entries (non-ca