WHAT IS BOOKKEPPING?

Bookkeeping is the recording, on a day-to-day basis, of the financial transactions and information
pertaining to a business. It ensures that records of the individual financial transactions are correct, up-
to-date and comprehensive. Accuracy is therefore vital to the process.

Bookkeeping provides the information from which accounts are prepared. It is a distinct process, that
occurs within the broader scope of accounting.

Each transaction, whether it is a question of purchase or sale, must be recorded. There are usually set
structures in place for bookkeeping that are called ‘quality controls’, which help ensure timely and
accurate recBookkeeping tasks

Essentially, bookkeeping means recording and tracking the numbers involved in the financial side of the
business in an organised way. It is essential for businesses, but is also useful for individuals and non-
profit organisations.

The person(s) responsible for bookkeeping for a business would record all transactions that are related,
including but not limited to:

Expense payments to suppliers

Loan payments

Customer payments for invoices

Monitoring asset depreciation

Generating financial reports

Bookkeeping and accounting are often heard being used interchangeably, however, accounting is the
overall practice of managing finances of a business or individual, while bookkeeping refers more
specifically to the tasks and practices involved in recording the financial activities.

Why bookkeeping matters

While it may seem obvious, detailed, thorough bookkeeping is crucial for businesses of all sizes.
Seemingly straightforward, bookkeeping quickly becomes more complex with the introduction of tax,
assets, loans, and investments.

Tracking the financial activities of a business is the truest purpose of bookkeeping, meaning it allows you
to keep an up-to-date record of the current incoming and outgoing amounts, amounts owed by
customers and by the business, and more.

Traditional bookkeeping

Bookkeeping has a long history as an integral part of accounting. Traditionally, it involves ledgers, charts
of accounts, and a tedious double-entry system. You can read more about the history of invoicing &
accounting in our blog post: 'Invoicing & accounting: a journey through history.

Here we'll cover how the main activities are recorded in traditional bookkeeping practices, which are
still used to this day.

ords.

WHAT IS ACCOUNTING?

Accounting - The systematic recording, reporting, and analysis of financial transactions of a business.
Accounting allows a company to analyze the financial performance of the business, and look at statistics
such as net profit.

Balance Sheet

Balance Sheet - A quantitative summary of a company's financial condition at a specific point in time,
including assets, liabilities and net worth.

The first part of a balance sheet shows all the productive assets a company owns, and the second part
shows all the financing methods (such as liabilities and shareholders' equity).
Asset - Any item of economic value owned by an individual or corporation, especially that which could
be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment,
real estate, a car, and other property.

On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock, and
retained earnings.

From an accounting perspective, assets are divided into the following categories:

current assets (cash and other liquid items),

long-term assets (real estate, plant, equipment),

prepaid and deferred assets (expenditures for future costs such as insurance, rent, interest), and

intangible assets (trademarks, patents, copyrights, goodwill).

Liability - An obligation that legally binds a company to settle a debt. When one is liable for a debt, they
are responsible for paying the debt. A liability is recorded on the balance sheet and can include accounts
payable, taxes, wages, accrued expenses, and deferred revenues. Current liabilities are debts payable
within one year, while long-term liabilities are debts payable over a longer period.

Shareholders' Equity - An ownership interest in a corporation in the form of common stock or preferred
stock. It is calculated by taking the total assets minus total liabilities; here also called shareholder's
equity or net worth or book value.

Income Statement

Income Statement - An accounting of sales, expenses, and net profit for a given period. an income
statement depicts what happened over a month, quarter, or year. It is based on a fundamental
accounting equation (Income = Revenue - Expenses) and shows the rate at which the owners equity is
changing for better or worse.

Revenue - The total amount of money received by the company for goods sold or services provided
during a certain time period. It also includes all net sales, exchange of assets; interest and any other
increase in owner's equity and is calculated before any expenses are subtracted.
Expense - Any cost of doing business resulting from revenue-generating activities.

Cash Flow Statement

Cash Flow Statement - A summary of the actual or anticipated incomings and outgoings of cash in a firm
over an accounting period (month, quarter, year).

It answers the questions:

Where the money came (will come) from?

Where it went (will go)?

Cash flow statements assess the amount, timing, and predictability of cash-inflows and cash-outflows,
and are used as the basis for budgeting and business-planning.

The accounting data is presented usually in three main sections:

Operating-activities (sales of goods or services),

Investing-activities (sale or purchase of an asset, for example), and

Financing-activities (borrowings, or sale of common stock, for example).

Together, these sections show the overall (net) change in the firm's cash-flow for the period the
statement is prepared.

Accounting Methods

Accounting Method - A process used by a business to report income and expenses. Companies must
choose between two methods acceptable to the IRS, cash accounting or accrual accounting.

Cash Basis Accounting - An accepted form of accounting that records all revenues and expenditures at
the time when payments are actually received or sent. This straightforward method of accounting is
appropriate for small or newer businesses that conduct business on a cash basis or that don't carry
inventories.

Accrual Basis Accounting - An accepted form of accounting that reports income when earned and
expenses when incurred. Under the accrual method, companies do have some discretion as to when
income and expenses are recognized, but there are rules governing the recognition. In addition,
companies are required to make prudent estimates against revenues that are recorded but may not be
received, called a bad debt expense.

Other Accounting Concepts

Accounts Payable - Money which a company owes to vendors for products and services purchased on
credit. This item appears on the company's balance sheet as a current liability, since the expectation is
that the liability will be fulfilled in less than a year. When accounts payable are paid off, it represents a
negative cash flow for the company.

Accounts Receivable - Money which is owed to a company by a customer for products and services
provided on credit. This is often treated as a current asset on a balance sheet. A specific sale is generally
only treated as an account receivable after the customer is sent an invoice.

THE DIFFERENT BETWEEN THEM;

While bookkeeping and accounting are both essential business functions, there is an important
distinction. Bookkeeping is responsible for the recording of financial transactions. Accounting is
responsible for interpreting, classifying, analyzing, reporting and summarizing financial data. The biggest
difference between accounting and bookkeeping is that accounting involves interpreting and analyzing
data and bookkeeping does not.

The Business Financial Process

The accounting process involves recording, interpreting, classifying, analyzing, reporting and
summarizing financial data. Bookkeeping is the process of recording financial transactions. Recording
financial transactions is the first part of and the foundation of the accounting process. Bookkeepers
handle the recording part of the accounting process. Accountants handle all parts of the accounting
process.

Understanding Bookkeeping

Bookkeepers record financial transactions in chronological order on a daily basis. Because accounting
software automates many of the processes, some bookkeepers in small organizations also classify and
summarize financial data in financial reports. These bookkeepers are often referred to as full-charge
bookkeepers. They make higher salaries than bookkeepers but lower salaries than accountants.
Understanding Accounting

Accountants analyze financial transactions in financial statements and business reports following
accounting principles, standards and requirements. Accountants analyze and interpret financial data to
report the financial condition and performance of the business to company leaders to help them make
informed business decisions.

The Similarities

Bookkeeping and accounting can appear to be the same profession to the untrained eye. Both
bookkeepers and accountants work with financial data. To enter either profession, you must have basic
accounting knowledge. Bookkeepers in smaller companies often handle more of the accounting process
than simply recording transactions. They also classify and generate reports using the financial
transactions.

They may not have the education required to handle these tasks, but this is possible because most
accounting software automates reports and memorizes transactions making transaction classification
easier. Sometimes, an accountant records the financial transactions for a company, handling the
bookkeeping portion of the accounting process.

The Distinctions between Accounting and Bookkeeping

Taking a few accounting courses and developing a basic understanding of accounting will qualify you for
a job in bookkeeping. To work in accounting, you must have at least a bachelor's degree to become an
accountant or, for a higher level of expertise, you can become a certified public accountant.

Accountants are qualified to handle the entire accounting process, while bookkeepers are qualified to
handle recording financial transactions. To ensure accuracy, accountants often serve as advisers for
bookkeepers and review their work. Bookkeepers record and classify financial transactions, laying the
groundwork for accountants to analyze the financial data.

Bookkeeping represents a process of recording actual transactions of a business. Bookkeeping does not
involve any analysis of the accounting data. Bookkeeping is an integral part of accounting, and thus, it
prepares necessary financial information for accounting. Bookkeeping includes recording, classifying and
summarizing data.
Accounting is a more complex concept that means reflection of the results of transactions according to
the principles, standards, and statutory requirements in the financial statements and other business
reports.
KALIGIRANG KASAYSAYAN NG FLORANTE ATLAURA

Ayon sa kay

Epifanio de los Santos

(isang

historian

), nalimbag ang unang edisyon ng“Florante at Laura” noong 1838. May 50 taong gulang na si Francisco
Baltasar ng panahong iyon. Noong 1906, nalimbag naman ang “Kung Sino ang Kumatha ng‘Florante’” ni
dalubhasang sa Tagalog na si Hermenegildo Cruz, sa tulong ni Victor Baltasar, anak ni Francisco Baltasar,
at ng iba pang kasapi sa mag-anak ng huli.

Unang Paglimbag

Maraming lumabas na mga edisyon ng Florante at Laura na nasa wikang Tagalog at Ingles,subalit
natupok ang mga ito noong 1945, nang magwakas ang Ikalawang DigmaangPandaigdig. Sapagkat
kabilang nga ito sa mga korido noong ika-19 dantaon, nalimbaglamang ang mga kopya ng akda ni
Baltasar sa mga mumurahing klase ng papel (

papel dearroz

ayon kay Epifanio de los Santos) na yari sa palay na ipinagbibili tuwing may misa atmga kapistahan sa
halagang 10 centavo bawat isa. Natatanging ang Aklatang Newberry ngChicago, Estados Unidos lamang
ang nakapagtabi ng mga kopya nalimbag noong 1870 at1875, kabilang sa tinatawag na Koleksiyong Ayer.
Nabanggit ang mga kopyang ito saBiblioteca Filipina ni T. H. Pardo de Tavera. Magkatulad na magkatulad
ang kopyang pang-1870 at ang gawa noong 1875.

Nalilimbag ang pamagat ng bersyong pang-1870 sa ganitong paraan ng pagbabaybay

Paglalarawan

Pangunahing tagpuan ng

Florante at Laura

ang madilim na gubat ng

Quezonaria

, at angnagsasalaysay ay mismong si

Florante

, habang nakikinig naman ang muslim na si

Aladdin

.Batay ang pagsasalaysay ng tauhan ng kuwentong si

Florante

mula sa sariling karanasan atkasawian ni Francisco Baltasar, sapagkat nakulong ang huli dahil sa bintang
ni MarianoKapule (kaagaw ni Selya) at kawalan ng katarungan - si Maria Asuncion Rivera o

MAR

-ay napakasal kay Mariano Kapule o

Nano

Kapule, na isang karibal sa pag-ibig. Isinulat niBaltasar ang

Florante

habang nasa piitan.