Article DetailsBOOKKEEPING: Going Down the Memory Lane of the Bookkeeping Process |
| Date Added: February 09, 2010 10:23:01 AM |
| Author: Germain Pj |
| Category: Business & Economy |
| Bookkeeping is a part of the field called Accountancy. It is the process of recording the financial transactions of an entity. Examples of these transactions are disbursements, sales, income, and withdrawals. A bookkeeper is different from an accountant in such a way that the accountant is the one who interprets and make reports on the outputs of the bookkeepers; therefore, the jobs of bookkeepers are highly important because this is where all the financial reports will come from. The bookkeeper is usually only until the “posting into the trial balance” stage while the accountant starts his or her job by preparing the financial statements using the outputs of the bookkeeper. BOOKKEEPING: Getting Familiar with the Two Systems of Bookkeeping There are two methods for Bookkeeping and these are the “single-entry bookkeeping” and the “double-entry bookkeeping”. The single entry bookkeeping is the simplest system of Bookkeeping. It only records the disbursements and the receipts of a certain entity in a single line. When you choose to use the single-entry system, you will find that it is almost similar to a checkbook register. The double-entry system of Bookkeeping is the most used method in the accounting world. In a transaction, there will always be two accounts that will be affected. This is due to the dual nature of the transaction. For example, if a sale is done, cash is received and the inventory of the business is affected as well. Because transactions are dual in nature, people in the 1400s have recognized the need for a double-entry type of recording their transactions and until now, this practice is widely used. In recording transactions using the double-entry method, there will always be two columns to fill out—unlike in single-entry where you will only record the transactions in a single line. BOOKKEEPING: Computerized Accounting is the Big Leap for the Bookkeeping Process In the past, the recording of transactions were always done manually and entered in paper books using either the single-entry method of bookkeeping or the double entry; however, with the emergence of accounting software, Bookkeeping has never been this easy. An example of these marvelous accounting software is QuickBooks which allows the bookkeeper to record the transactions in a more systematic and hassle-free way. These accounting software have been programmed to follow the whole accounting process (the first three steps represent the process for bookkeeping) and all you have to do is enter your transactions into the system and presto! The accounting software will do your job for you. There are also added features to these accounting software that you will surely love. There are several ways on how to get your own accounting software but the most popular of them all is by using the aid of the World Wide Web. You can search for these softwares and once you have chosen the best one for you, you can make an order online or call them up so they can help you with all your accounting software concerns. These softwares also have 24/7 technical support representatives to guide you throughout all the technical aspects of the software. With these powerful tools, you can make bookkeeping really easy and just concentrate on your business as a whole. Pj Germain is author of this article on Professional Web Design. Find more information about Online Marketing Services here. |
