Bookkeeping Essay

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Bookkeeping Essay
Sarah Kloft
Kaplan University
Professor Yancy
July 17, 2012

Bookkeeping Essay

Bookkeeping is an important aspect of any business. Bookkeeping can be defined as the practice of keeping the company’s books or records in an up-to-date and accurate manner (WiseGEEK, 2012). This allows the company to track in income and expenses of every day operations. Although bookkeeping is time consuming, it is the most important part of the business (WiseGEEK, 2012).

One type of bookkeeping is called a Peg-board system. This system consists of a metal or wooden type board with pegs down the left side and the necessary forms needed to run the business (Kinn’s 2007, p. 406.). These forms are an encounter form, receipt form, a ledger card and a journal entry card (Kinn’s 2007, p.406). The peg-board system is considered a fast and simple form of bookkeeping. It only requires the bookkeeper to write the information once and with the use of carbon paper, the entry is placed on all of the necessary documents (Kinn’s 2007, p.406). The encounter form is used to document the visit and the patient’s information (Elsevier, 2008). The receipt form is the record of payment and any outstanding balances that the patient may have. The ledger card describes the type of service that was performed, any fees and payments as well as any type of adjustments to the bill and any remaining balance (Farlex, 2012). Finally the journal entry is the record of all of the daily transactions. This is a very simple, time saving type of bookkeeping system.

Another type of bookkeeping system is the single entry system. Each entry to this system is made individually. This is one of the oldest and simplest types of bookkeeping (Kinn’s, 2007 p. 456). It starts with using three different types of ledgers. These being a general ledger or daily log book, a cash journal similar to a transaction register or checkbook, and an accounts receivable journal (Kinn’s, 2077, p. 456). This...
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