Recording of Transactions
Penny Bookkeeping is a method of recording transactions that involves tracking each penny spent. This type of bookkeeping allows businesses to keep track of their expenses and income accurately, as well as providing an easy way to analyze spending patterns and budgeting. Transactions are recorded in a ledger, which is divided into two columns: one for debits and one for credits. Debits are used to record money that has been spent, while credits are used to record money that has been received. Each transaction is noted with the date it occurred, the amount of money involved, and any relevant notes or descriptions about the transaction. Penny bookkeeping can be used by individuals and businesses alike to help them better manage their finances.