What is Bookkeeping by vathani.W
What is Bookkeeping?
It is essential to have a bookkeeping system for any business to save that from failing. Bookkeeping is accounting for financial transactions daily to keep the records current. The entries are a double-entry system, either manually or computerized system. Nowadays, a manual method is not used due to the advancement of technology. Most companies are using Microsoft Excel or accounting packages to do the finances. Implementing a professional accounting system is vital for the survival and growth of the company. Firstly bookkeeping is done for financial transactions then the information is picked from bookkeeping records to prepare the final accounts.
The tasks of a bookkeeper
An experienced staff called a bookkeeper usually does bookkeeping. A bookkeeper will maintain the records of sales and purchases in the ledgers. These accounts are called debtors and creditors control accounts. These accounts will be checked every month and also reconciled. Then the bookkeeper will maintain the bank transactions and reconcile the bank accounts every month. Bookkeeping entries for every truncation have two parts. Therefore, it affects two ledger accounts. The way to have control over every transaction in every account is to make sure each budget is balanced. The debit entry on one account and the credit entry on another report must be balanced. If it does not adjust, it is evident that there are some errors.
Using Accounting packages.
In this day and age, the advancement of technology has helped us to have fully computerized accounting systems. There are so many accounting packages available out there it is a matter of purchasing and uploading them into the computer. If you use accounting packages to perform accounting functions, you will experience many advantages. You can produce the action fast and without errors unless errors are made initially.