Bookkeeping is defined as the process of systematically and methodically recording the financial accounts and transactions of an entity. Double-entry bookkeeping is an accounting system that requires that for every financial transaction there must be a debit  and a credit. When merchandise is sold for cost, there is a debit to cash and a credit to sales. The double entry technique emerged in Florence, Italy during the 13th century, by Lucas Pacioli. Per noted by Sangster (2016) in his study “The Genesis of Double Entry Bookkeeping” the conscious practitioner that an entry should include a location in a contra-entry, initiated or what Sangster (2016) identified as the genesis of the double entry bookkeeping which initiated and used during 13th century. In addition, was noted that:

“…bookkeeping moved from being a device used to maintain a historical record of a transaction to a method that enabled rapid confirmation that the transaction had been entered accurately in both accounts. It had become important to ensure that entries were made correctly. This also marked the point at which bookkeeping shifted from being a mechanical task to a skilled craft, requiring far more care and attention, and signaling the beginnings of the accounting profession.” Sangster (2007, p. 300)

The accountant – bookkeeping professional is highly regulated by the following organizations:

·         Federal Accounting Standards Advisory Board,

·          Financial Accounting Standards Board,

·         Government Accounting Standards Board,

·         Generally Accepted Accounting Principles (GAAP), and

·         International Reporting Standards (IFRB).

The purpose of these organizations is to provide rules and ethics that accountants will need to follow to ensure the consistency of the reporting, for which management and shareholders rely in order to make sound decisions related to the resources of the business itself.

If you want to learn more about the rules, ethics and services we provide. Schedule a consultation today!