LESSON 1: Overview of documenting and monitoring by History of Bookkeeping

Bookkeeping compiling this data into reports to show

the company's financial performance. The origin of bookkeeping dates back
Introduction: If arithmetic is the fundamental aspect of a few centuries in the past. Although it is
The process of recording and mathematics, bookkeeping is a a relatively old process, the accounting
organizing a company’s financial fundamental part of accounting. industry continuously develops
transactions depends on certain A bookkeeper (or book-keeper), regulations to ensure a more updated
individuals who are tasked to ensure also called an accounting
that the organization remains responsible clerk, refers to a person who
in making informed keeps the books of an
decisions and compliant with the organization or a business. For a
laws and regulations revolving around large company with substantial
the business. assets, revenues, and a large
workforce, hiring a bookkeeper is
To ensure this goal, companies essential for organizing the
hire bookkeepers or accounting company's financial records. This
clerks who meticulously track all their ensures that big companies can
financial records. As professionals in the make business decisions easily and
field, you will provide the baseline produce financial statements for all
organization for income and sales stakeholders, knowing that they
targets, as well as all financial comply with company policies and legal and modern approach to the process.
data needed for strategic decision- regulations.
making. To do this, it is crucial to develop For a small company, In the presentation below, you will
your skills to maintain the accuracy and bookkeepers are also crucial for learn about the history of bookkeeping
reliability of financial records and manage its smooth operation. Owners hire and the figures involved in its
cash flows, aiding in the prevention of bookkeepers to organize, store, and development.
fraudulent transactions. analyze their company's financial
This lesson will equip you with the information, thereby reducing their 7000 BC - The first practice of financial
foundational knowledge that will help you workload. They benefit from having a record keeping was found in Assyria,
to fulfill your job as a bookkeeper/ bookkeeper who ensures accurate Sumer, Babylon, and Mesopotamia way
accounting clerk. financial records, enabling informed back in 7000 BC, showing archives of
decision-making and financial planning. records of accounts of a farm produce
Topic 1: What is Bookkeepers in small businesses handle business in Ancient Greece as well as
Bookkeeping? tasks such as invoicing, payroll, and tax from the Roman Empire.
preparation. Their expertise helps owners
stay compliant with financial regulations,
Bookkeeping involves the 1458 - The first practice of financial
avoiding penalties and allowing them to
systematic recording and categorizing record keeping has been found in Assyria,
focus more on business growth rather
of all financial Sumer, Babylon, and Mesopotamia way
than on their company's financial status.
transactions undertaken by a business back in 7000 BC, showing archives of
(or an individual). It involves records of accounts of a farm produce
business in Ancient Greece as well as
from the Roman Empire.

1494 - Some believe that it began

with Luca Pacioli, an Italian
mathematician and Franciscan monk,
known as the "Father of
Bookkeeping," pioneering the double-
entry system, through his book "Review
of Arithmetic, Geometry, Ratio, and
Proportion." It provided the first popular
description of the double-entry system
and tools like journals and ledgers, which
have been used for teaching bookkeeping
and accounting for years.

1800s- Bookkeeping as a profession was

recognized during the 1800s in the UK
and the US , as trade and exploration
efforts greatly emerged in the economy.
Because of the early capitalization and
rise of the stock exchange, different
businesses started to consider the
importance of the role of
bookkeepers and hired people who
knew how to record financial
transactions.

20th Century - As technology rose

during the 20th century, the job of
bookkeepers changed from manual
recording to the application of
worksheets and
advanced calculators, which greatly Bookkeepers are record
helped bookkeepers to do their jobs more keepers; however, their role goes
efficiently and less time-consuming. beyond simple recording. They are
essential for maintaining and
organizing a company's financial
Laws and Regulations transactions. Although bookkeeping is
a process under the field of
In every generation, business accounting, bookkeepers and
mirrors the growth of economic accountants differ in their fields of
development and innovations, and the expertise.
use of technology is recommended when
organizing financial transactions for Bookkeepers versus
easier recording. Accountants
To protect the data of every user, profession, below are some of those that
the Data Security and the Data each bookkeeper must take note of: Although bookkeeping is a process
Protection Act 1998 were Topic 2: Roles and under the field of accounting,
implemented. Responsibilities of a bookkeepers and accountants differ in
As a bookkeeper, you should familiarize Bookkeeper
the following legal obligations and Bookkeepers gather the essential
regulations. Although there are several materials for financial statements by
laws and regulations that govern the meticulously recording data into the
accounting system. This can be
done manually,
using
worksheets, or
by leveraging
various
accounting
software
options available
online.
their fields of expertise, as well as in their To equip you with the knowledge do not have a CFO but rather a Controller
tasks. While a bookkeeper is in charge of needed to keep up in its sector, here are as the head of finance.
recording transactions, an accountant is the following fields of accounting:
involved in analyzing and Controller – They oversee the entire
documenting financial data with a accounting operations, ensuring the
need for analytical skills and subject Bookkeeping in an Organization accuracy and integrity of financial
expertise. They analyze the company's records, and preparing comprehensive
financial situation and provide Bookkeeping falls under the large financial reports for management.
necessary information to the appropriate scope of the accounting field. It is
stakeholders. an accounting process that ensures all Internal Auditor – They objectively
evaluate the financial and
Topic 3: The Accounting operational activities of a
Field company.

Accounting is considered the process Accounting Manager – They

that involves the recording of are responsible for supervising
various financial transactions bookkeepers/accounting clerks,
involving various entities. It is ensuring accurate record-
identified as a rapidly growing field keeping, and managing day-to-
focused on preparing, reviewing, and day accounting operations.
analyzing various financial information for
individuals, businesses, and Accounts Receivable Clerk –
organizations. They prepare and send invoices
In this field, bookkeepers play a to customers, track payments, and
critical role in a company, as every financial records and transactions of a manage collections.
transaction, income, and expense business are organized. Typically,
recorded provides the foundation to bookkeepers are hired to take on this Accounts Payable Clerk – They manage
create critical analysis. By ensuring responsibility in a company or a firm. and process vendor invoices, reconcile
accurate and complete data, Usually, bookkeepers are under statements, and prepare payments.
bookkeepers/accounting clerks can the supervision of the accounting
directly support informed business manager or the senior bookkeeper. Senior Bookkeeper- They oversee the
decisions and success in a competitive Below is an example of an organizational work of junior bookkeepers, handle
market. chart of an accounting firm: complex transactions, and ensure the
accuracy of financial records.
CFO - They are responsible for providing
strategic financial leadership, managing Payroll Clerk – They process employees'
financial planning and analysis, and payroll, maintain payroll records, and
ensuring the organization’s financial ensure compliance with tax regulations.
health and compliance with
regulations. Sometimes, small businesses
Inventory Clerk – They ensure the
tracking of supplies and materials
acquired by a company.

Bookkeeper - They gather and record

financial transactions, summarize them
regularly, and prepare financial
statements and accounts as needed.