Maintaining accounting books

Accounting books are a record of all financial transactions that a business makes. They are used to track income, expenses, assets, and liabilities. Accounting books are important for several reasons, including:

• They help to ensure that financial information is accurate and complete.
• They provide a historical record of a business's financial performance.
• They can be used to prepare financial statements, such as balance sheets and income statements. 
• They can be used to file taxes.

There are following key aspects of maintaining accounting books are:

• Identifying the transaction through an original source document and determining which accounts are affected and by how much
• Making a voucher with details on date, amount, description, name and particulars of the party
• Making entries in the books of accounts or accounting records like cash/bank book, ledger, etc.
• Making entries in other memorandum records like fixed asset register, advance register, etc. if applicable
• Following the key accounting policies and principles for recording transactions
• Closing the books of accounts on a periodical basis and reconciling them with bank statements
• Preparing key financial statements like income and expenditure statement, balance sheet, etc.
• Following the prescribed formats for books of accounts and financial statements

Resource:

1. Training Module on  “Financial Monitoring & Reporting, Ministry of Health and Family Welfare, Government of India