bookkeeping
BUUK-kee-ping
/ˈbʊkˌkiːpɪŋ/
The activity or occupation of keeping records of the financial affairs of a business.
Bookkeeping is the systematic recording of financial transactions. It's the foundational step in accounting, focusing on accuracy and organization of daily entries.
The story behind the word. The word 'bookkeeping' is delightfully straightforward! It's a compound of 'book' (referring to ledgers or records) and 'keeping' (meaning to maintain or preserve). It literally means 'keeping books' of financial transactions, a practice that has been around for centuries.
Word relationships
- record-keeping: Broader; bookkeeping specifically refers to financial records.
- accounting (informal): Informally, people might use 'accounting' for basic record-keeping, but 'bookkeeping' is more precise for the recording aspect.
Commonly confused with
- accounting: 'Bookkeeping' is the process of recording transactions, while 'accounting' encompasses bookkeeping, plus analyzing, interpreting, summarizing, and reporting financial data.
Word family
- bookkeeper (noun): A person who records the financial transactions of a business.
Collocations
- double-entry bookkeeping
- single-entry bookkeeping
- accurate bookkeeping
- manage bookkeeping
Example sentences
- "Accurate bookkeeping is essential for any small business to track its income and expenses and prepare for tax season." The importance of good bookkeeping.
- "Many startups choose to outsource their bookkeeping to specialized firms, allowing them to focus on core business activities." Outsourcing bookkeeping services.
- "Her daily bookkeeping tasks included entering sales receipts, paying invoices, and reconciling bank statements." The daily tasks of bookkeeping.
Memory hook
BOOKKEEPING is about KEEPING track of your financial BOOKS. Keeping the books
When not to use
Don't use 'bookkeeping' to refer to complex financial analysis or strategic financial planning; that's the realm of accounting or finance.
Fun facts
- The earliest known form of bookkeeping dates back to ancient Mesopotamia, where clay tablets were used to record transactions.
- The modern system of double-entry bookkeeping, which is fundamental to accounting today, was popularized in 15th-century Italy.
Related words
Explore more words
account, transaction, track, statement, do business, journal
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