Ideal_BC_accounting Ideal_BC_accounting | Page 9

and the interests that have to be paid out. A separate section should be maintained for updating this record as far as bookkeeping is concerned. The Re-Invested Amount The Re-Invested amount is also known as earnings retained by a business. This means the profits done by a business that is not paid to a third party. Instead, it is invested in the business again. Thus this figure is a cumulative number that keeps growing as the company expands. Maintaining this amount while bookkeeping is important as it shows the financial graph of your business thus helping you analyze the growth.