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Most of the business operations recorded in books require the indication of the other party of the transaction – counterparty.

Counterparty is a third party entering into any contractual relationships with your company. These relationships are somehow related to the company’s business activity, for example, services received or provided, goods purchased or sold, incurrence of financial commitments, payroll accounting, cash inflow or outflow, etc.

Based on the operation, a counterparty can be your customer, vendor, employee, bank, or tax agency.
Records are kept individually for each counterparty, for this reason, the counterparty shall be indicated in the accounting entries.

Separate counterparty accounting allows to find out at any time who owes you and how much they owe you, as well as whom and how much you owe, to reconcile payments with a counterparty at any date to confirm the amount due, and to get a counterparty’s account statement over

When someone unfamiliar with modern accounting faces such terms as "general ledger" or "general journal", they imagine giant dusty books, complicated and totally confusing. Of course, such vision of modern accounting is absolutely wrong. Meanwhile, the general ledger is essential for any company’s accounting system.

Historically, journals and ledgers were constantly bound notebooks in which a clerk hand wrote entries right after a sale was closed, a cost become incurred, revenues were received, or any other event took placed that affected the company's records.

Nowadays, of course, journals and ledgers are completely implemented in accounting software. As a result, transaction data are entered manually through onscreen forms or even more often automatically (through bank feeds, point of sales systems). Moreover, software automatically register journal entries to ledger so the don’t need to be transferred manually.

The general journal is a list of all business transactions of a company

Most people know debit and credit outside the context of bookkeeping.

Bank cards, for instance, are commonly used almost by everyone. There are debit and credit payment cards. The former allows us to spend money directly from our current account; credit cards, on the other hand, offer an opportunity to use a bank credit line, thus giving a free hand to spend borrowed money. Debit in this context is the money received from the bank account, and credit is the money available on a bank loan.

Debit and credit are also commonly known through the bank statement where the write-off amounts are specified in the debit column, and the charged amounts are indicated in the credit one.

Nevertheless, bookkeeping double entry implies a different role and idea of debit and credit.

For you to use debit and credit to trace economic operations under various types of business accounting records, you

Bookkeeping has been in existence in one form or another for many years. It appeared approximately when people started trading.

Bookkeeping makes sense because, if we want to run a business in an orderly manner, we need a certain system of records to help us properly trace and regulate business transactions.

Bookkeeping can be defined as a regulated system for the collection, registration, and consolidation of information expressed in terms of money about the assets status, the company’s commitments and their changes (flow of funds) by comprehensive, continuous, and documented accounting of all economic operations.

In simple terms, bookkeeping is the recording of all operations someway related to the company’s field of business.

Initially, bookkeeping was established by Luca Pacioli, an Italian friar and mathematician who lived at the turn of XV-XVI centuries. When a child, he assisted a merchant in trading record keeping, which subsequently became his

If we are referring to an account with regard to accounting, then it carries a completely different meaning compared to what the majority of people are accustomed to. The use of the word account generally sparks ideas of an account with a bank. In the world of business, account could relate to a customer. Under this meaning, an account is another entity or person for whom a business acts as a supplier, and with whom there may be an outstanding accounts receivable balance.

These two concepts are correct, however in accounting the word account represents an entirely different meaning.

The word account in everyday language is also used as a substitute for an explanation or a report of certain actions or events. In order to explain or to report, you will, of course, have to remember what you were doing or what happened. As it is not always easy to