In order to summarize the results of a business activity, each financial transaction must be recorded in a bookkeeping system with remove Tax. An entrepreneur has option to employee of bookkeeper in their organization or outsource the whole bookkeeping system to a professional firm. Bookkeepers verify and enter information into journals and ledgers or into a computer.

Every business is required by the tax authority to keep bookkeeping records to enable the net taxable profit or loss to be calculated. While complex accounting systems can be appropriate in some circumstances the choice for small business is basically cash accounting or accrual accounting.

This article is meant as a guide for non-accountants and non-bookkeepers, that is the man-on-the-street, who may be contemplating doing his own bookkeeping for his business but does not know where and how to start, or it could be for students who have just started a course in bookkeeping or accountancy, and need a quick and easy guide to refer to.