bókhalds

Bókhald, often rendered in English as bookkeeping, is the systematic recording of the financial transactions and activities of an individual or organization. The term bókhald encompasses the processes of recording, classifying, and summarizing financial data to produce information that supports financial decision-making and reporting. It serves as the foundation for financial statements and tax compliance.

Core activities in bókhald include the collection of source documents (such as invoices, receipts, and bank statements), posting transactions to ledgers or journals, and maintaining a chart of accounts. Most modern bookkeeping relies on a double-entry system, where each transaction affects at least two accounts through debits and credits, helping to keep the accounting equation (assets equals liabilities plus equity) in balance. Simpler single-entry systems are still used by very small enterprises.

The primary outputs of bókhald are financial statements and reports, including the income statement, balance sheet, and cash flow statement, as well as trial balances and management reports. These records support cash management, financial analysis, budgeting, and regulatory compliance. They also provide the data needed for tax filings and external audits.

Bókhald is distinct from broader accounting, which includes interpretation, planning, and strategic advice in addition to data recording. With advances in technology, bookkeeping increasingly relies on computerized software and automation. In many jurisdictions, businesses are required to maintain proper books and may be subject to audits, with standards and practices guided by national accounting rules or international frameworks such as IFRS or GAAP. Etymologically, the term derives from Icelandic roots meaning book-keeping or the keeping of books.