Careful thinking must be done before the decision is taken. This is what we call management. Good management means having accurate information on which to base decisions. Bookkeeping review Definition As we have just pointed out, all operations should be recorded and used as a basis for decision-making. If we do this we will be able to keep our accounts in an orderly fashion.
Bookkeeping is an essential management tool, a requisite for good management.
Bookkeeping consists mainly of establishing accounts from the entries of the enterprise's various operations. First, each operation is recorded daily in a journal. All these accounts form the account book. The promoters usually bring them to life by providing the capital. Liabilities are the initial capital expenditure plus debts.