From ancient time keeping the record of the spending is followed. This is done in order to keep the track of our money. Bookkeeping came after the word waste book, which was used in colonial America. This includes the recording of each transaction. Let’s take North York city for reference and move ahead talking on it.
· Accounting vs. Bookkeeping
Bookkeeping is the traditional method to track the data, amounts and other revenue and expense transaction. Accounting is the way to track the previous transaction done by the firms. Accounting collects the details from bookkeeping and rearrange it to know the status of the company. Accounting system provides the information that helps in taking the decision of the business. Taxes North York can easily be calculated by using bookkeeping. Bookkeeping is standard followed by firms in every country of the world. It is either a single entry or double entry.
Double-entry Bookkeeping is the most used entry method of in bookkeeping North York. The double-entry bookkeeping is, like other hugely influential ideas, extremely simple. Each transaction is recorded to two separate columns, as a credit in one column and a debit in the other column. For example, when a firm sells a customer $100 of goods, it posts a $100 credit on the Sales column in accounts, and a $100 debit on the revenue column of account. When the customer pays the money, it will be credited to the Revenue account (thereby reducing the asset of money receivable) and as credit in the Cash account. (The principle taught in accountancy subject is ‘debit the receiver, credit the giver’.) At the end of the day, the credit and debit should balance, that is, sum up to zero; the assets and the liabilities should be equal. (Any profit the firm has made is a liability to the shareholders.) In all but the smallest firms, the books will be kept by different clerks, and have to balance at the end of every month (at banks, every day). By proper design of the bookkeeping system, we can see to it that each shop, or branch, transactions can be balanced individually. Thus most frauds will need the collusion of two or more members of staff; and this principle of dividing responsibility, also known as dual control, it is taken up by audit.
Single Entry System: single entry book keeping is recording the transaction details on only one side of the column either credit or debit. Single entry system is considered the incomplete form of bookkeeping. It is confusing entry, that is why it is not considered as proper bookkeeping North York method and other cities in world.
With the proper recording of the transaction, it is possible to get clarity on the status of companies and taxation to the north York government. Usually, bookkeeping North York is maintained by the person called bookkeepers who keep tracking on the purchase, payments, company spending and clearly enters into the ledger, but nowadays it has become digitalized, every entry made in tally sheets and finally compared to come to the conclusion or to take the proper decision in few matters of company.