Book-keeping is the practice of maintaining a careful record of all of a person or organization’s income and expenditures. In modern times, book-keeping is often regarded as essential so that a person or organization can discharge tax obligations to the government fully and properly. Book-keeping is less complex than accounting but proper book-keeping is an essential preparatory stage in the completion of proper accounts. Within corporations, trained personnel are usually employed to carry out book-keeping duties, although these people are not usually fully trained accountants as the task does not require that level of expertise.
A variety of book-keeping systems exist. The simplest is called single-entry book-keeping. It involves recording each disbursement of money the company or person makes to an external entity and any payment made by an external entity to the person or company.
Double-entry book-keeping is a more complex system which was first developed in late medieval Italy. It involves each transaction being recorded in two separate columns. Such book-keeping systems involve maintaining columns for separate aspects of the company’s financial life, such as Bank, or Supplies. Double-entry book-keeping is regarded as more accurate for the purpose of keeping records of complex financial entities and it forms the basis of modern corporate book-keeping practice.