bookkeeping

What Are the Basic Steps in Bookkeeping?

The basic steps in bookkeeping include:
1. Recording Transactions: This involves documenting all financial transactions in a systematic manner.
2. Classifying Transactions: Grouping transactions into categories like revenue, expenses, assets, and liabilities.
3. Summarizing Data: Creating financial statements like income statements, balance sheets, and cash flow statements.
4. Reconciling Accounts: Ensuring that the records match bank statements and other financial documents.

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