Periodic Bookkeeping

Periodic Bookkeeping

In business, periodic bookkeeping means recording all the sales, expenses, and other financial activities that happen over a specific time (like a month). At the end of that period, you gather all the transactions and create a summary called the financial statement. This statement helps you understand how much money the business made, spent, and saved during that time.

Periodic bookkeeping is a simpler approach for some businesses because it reduces the number of times you need to record transactions, making it easier to manage financial information. However, it might not provide real-time updates on your finances, which could be important in rapidly changing situations. The choice between periodic bookkeeping and other methods depends on the needs of the business and how often they want to track their financial progress.