Bookkeeping Basics

Bookkeeping Basics, a path on Breni, covers the day-to-day recording side of business finance, for small business owners and people starting out in bookkeeping. Its 7 courses cover what bookkeepers do, setting up the books, recording sales, recording expenses, bank reconciliation, payroll and sales tax, and month-end reports. Learners finish able to keep invoices and bills up to date, reconcile a bank account and produce a profit and loss report. Reconciliation follows the recording courses, as each unlocks after the last. For interpreting statements, Accounting Basics goes further.

7 courses
12 learning objectives
Level: beginner
Language: English
Price: Subscription, free trial

What you will be able to do

Set up a chart of accounts for a small business
Record invoices, customer payments and supplier bills
Reconcile a month of transactions to a bank statement
Categorise receipts and keep track of petty cash
Record a simple payroll and VAT or sales tax
Produce a profit and loss report and an aged debtors list

Full curriculum

Part 1 · Getting set up

1. What Bookkeepers Do: Beginner Basics

Describe a bookkeeper's job and how it supports accounting. Units, in order: Bookkeeping compared with accounting; Single and double-entry systems; Cash and accrual bookkeeping; Source documents; A bookkeeper's monthly routine; Common bookkeeping mistakes and how to avoid them.

— Bookkeeping and Accounting
Learn what bookkeepers do and how they support accounting.
- What is Bookkeeping?
- Bookkeeping vs Accounting
— Single and Double Entry
Explore single-entry and double-entry methods for recording transactions.
- Single-Entry System
- Double-Entry System
— Cash and Accrual Methods
Understand cash and accrual timing for tracking business revenue.
- Cash-Basis Bookkeeping
- Accrual-Basis Bookkeeping
— Source Documents
Identify receipts and invoices that prove every financial transaction.
- Types of Source Documents
- Keeping Records Safe
— The Monthly Routine
Follow a step-by-step monthly close checklist to stay organized.
- Gathering and Posting
- Bank Reconciliation
— Common Bookkeeping Mistakes
Spot common errors like mixing funds and fix them early.
- Mixing Personal and Business Funds
- Skipping Reconciliations

2. Setting Up the Books

Set up a chart of accounts for a small business. Units, in order: Choosing account categories; Opening balances; Separating business and personal money; Choosing software such as QuickBooks, Xero or Wave; Filing and keeping records.

Part 2 · Day-to-day recording

3. Recording Sales and Income

Record sales, invoices and customer payments correctly. Units, in order: Creating invoices; Accounts receivable; Recording cash and card sales; Chasing late payments; Refunds and credit notes; Deposits and payments in advance.

4. Recording Purchases and Expenses

Record bills, expenses and supplier payments. Units, in order: Accounts payable; Receipts and expense categories; Petty cash; Recurring bills; Allowable business expenses; Checking supplier statements.

5. Bank Reconciliation

Match the books to the bank statement every month. Units, in order: Why reconciliation matters; Matching transactions; Timing differences; Finding and fixing errors; Bank feeds in accounting software; Reconciling credit card accounts.

Part 3 · Month-end and beyond

6. Payroll and Sales Tax Basics

Record wages and sales taxes such as VAT accurately. Units, in order: Gross and net pay; Payroll deductions; Recording payroll journals; How VAT and sales tax work; Keeping tax records; Paying employees and contractors differently.

7. Month-End Reports

Close the month and produce simple reports for the owner. Units, in order: Checking the trial balance; The profit and loss report; The balance sheet report; Aged debtors and creditors; A month-end checklist; Year-end tasks and working with an accountant.

Sample: What Bookkeepers Do: Beginner Basics

The opening tier, (Bookkeeping and Accounting). Learn what bookkeepers do and how they support accounting.

What is Bookkeeping?

Bookkeeping is daily recording of money in and money out.

Bookkeeping vs Accounting

Bookkeepers record numbers while accountants analyze data and taxes.

Questions about Bookkeeping Basics

Can I learn bookkeeping on my own?

Yes. Bookkeeping Basics on Breni starts with what bookkeepers do and builds up to month-end reports.

What is the difference between bookkeeping and accounting?

Bookkeeping records transactions accurately day to day. Accounting uses those records to prepare, analyse and explain financial statements.

Which bookkeeping software does the path use?

It explains ideas that work in any software and compares QuickBooks, Xero and Wave in the second course.

Do I need a qualification to work as a bookkeeper?

Rules vary by country, and many bookkeepers hold a professional qualification. This path teaches the skills but is not that qualification.