Bookkeeping in in the USA

Bookkeeping
is the recording of financial transactions.
Transactions include:
sales,
purchases,
income,
receipts
payments

Bookkeeping is usually performed by a bookkeeper.

Bookkeeping is not accounting

There are 2 common methods of bookkeeping in the USA:
the single-entry bookkeeping system
the double-entry bookkeeping system

accounting clerk
accounting technician

daybooks

the correct day book,
suppliers ledger,
customer ledger
general ledger

Finally financial statements are drawn from
the trial balance, which may include:
the income statement, or P&L
the balance sheet
the cash flow statement
the statement of retained earnings

Single-entry bookkeeping system

A double-entry bookkeeping system

assets = liabilities + equity
accounting equation:

Daybooks include:
Sales daybook, for recording all the sales invoices.
Sales credits daybook, for recording all the sales credit notes.
Purchases daybook, for recording all the purchase invoices.
Purchases credits daybook, for recording all the purchase credit notes.
Cash daybook, usually known as the cash book, for recording all money received.
Petty Cash daybook, for recording small value purchases paid for by cash.
General Journal daybook, for recording journals.

Ledgers include:
Sales ledger, which deals mostly with the accounts receivable account.
Purchase ledger is a ledger that goes hand and hand with the Accounts Payable account.
General ledger representing the original 5 main accounts:
assetsassets, liabilitiesassets, liabilities, equityassets, liabilities, equity, incomeassets, liabilities, equity, income, and expenses.

Abbreviations used in the
USA bookkeeping

A/C – Account
A/R – Accounts receivable
A/P – Accounts payable
B/S – Balance sheet
c/d – Carried down
b/d – Brought down
c/f – Carried forward
b/f – Brought forward
Dr – Debit record
Cr – Credit record

G/L – General ledger; (or N/L – nominal ledger)
P&L – Profit and loss; (or I/S – income statement)
PP&E – Property, plant and equipment
TB – Trial Balance
GST – Goods and services tax
VAT – Value added tax
CST – Central sale tax
TDS – Tax deducted at source
AMT – Alternate minimum tax

EBITDA – Earnings before interest, taxes, depreciation and amortisation
EBDTA – Earnings before depreciation, taxes and amortisation
EBT – Earnings before taxes
EAT – Earnings after tax
PAT – Profit after tax
PBT – Profit before tax
Depr – Depreciation

Online bookkeeping in USA