Introduction to bookkeeping and accounting Open University


Owners of the business have claims against the remaining assets . Equity is the investment a business owner, and any other investors, have in the firm. The equity accounts include all the claims the owners have against the company. The business owner has an investment, and it may be the only investment in the firm. If the firm has taken on other investors, that is reflected here.


As a bookkeeper, your attention to detail must be almost preternatural. Careless mistakes that seem inconsequential at the time can lead to bigger, costlier, more time-consuming problems down the road.

More about running your business

Here’s a look specifically at ecommerce bookkeeping from a daily, monthly, quarterly, and yearly perspective. Bookkeeping software helps you prepare these financial reports, many in real-time. This can be a lifeline for small-business owners who need to make quick financial decisions based on the immediate health of their business.

An easy example to think about is a mortgage as when you take one out, you sign a contract telling the bank you’ll pay them over a period of time in instalments. Understanding and tracking your financial data is an essential part of small business finance.

What Is The Role Of a Bookkeeper?

The skill or practice of keeping books or systematic records of financial transactions, e.g. income and expenses. In addition to being certified public accountants, many of them work for their own businesses and provide financial and tax-related services to individuals or organizations. Bookkeepers are individuals in an organization who perform Bookkeeping functions. Their job is to manage every aspect of financial data for a company. Normally, they keep daybooks so that every financial transaction is entered in the appropriate daybook or general ledger.

  • Accounting refers to the analysis, reporting and summarizing of the data that bookkeepers gather.
  • It can be confusing and overwhelming if you’re diving in for the first time.
  • See’s top picks for the best bookkeeping software.
  • A good bookkeeper will always comply with the latest legal regulations and will make sure all your accounts and books are up to date with any recent legal changes.