Our dive into the world of bookkeeping is going to be a deep and adventurous one. Snorkel your way into this article to be well acquainted with the concept and need of Bookkeeping for a successful business venture. You are bound to stick till the very because as dull as Bookkeeping sounds, there is a lot to learn from it.
WHAT IS BOOKKEEPING
The very first thing that strikes when you hear the word ‘bookkeeping’ is a very graphic image of a library. Although, Bookkeeping has nothing to do with a library.
To put it in plain words, bookkeeping refers to an occupation where you jut down important daily transactions and affairs in a specific manner in an official notebook for business purposes. This notebook is specifically the bookkeeper’s responsibility and is an utterly important casement that gives insight into what and which business exchanges have taken place on a daily basis.
Bookkeeping for business is essential and integral for any business. This practice has got to be the one from which you benefit the most. Bookkeeping is the bedrock for accounting. Based on daily bookkeeping, accountants are able to perform an annual or a monthly audit.
Bookkeeping, in a nutshell, is an activity where one puts out neatly all the transactions that took place in a business firm on either a single entry or double entryways in a book or online over a computer or an application. This is highly crucial to any business accounting, to begin with.
BOOKKEEPING AND BUSINESS
It is a very tedious task to set up a business and to this, all fellow entrepreneurs can agree to. Earned profit and loss along with investments made are what make a business successful and functioning. To get a daily log of all the money flow both in and out is the job bookkeeping. It helps you to be up to date with any and all credit, debit, and taxes.
With so many things that could go wrong in a business venture, bookkeeping is your safety net that you can fall back to and go through to be double sure. Hunt for an account for the job if bookkeeping. A good and reliable account is key to all your money related problems. The accountants’ scribbling in the daily bookkeeping log is a permanent record that can be accessible in times of need. Many times, it is this bookkeeping that is a legal requirement for stepping into new ventures.
Bookkeeping is to be done in an official given fashion. The most common are the methods of double-entry and the single entry. Anyone familiar with the concepts of general accounting will understand the above two methods. But with the advent of technology into our lives, even this task of manual bookkeeping has been handed over to online software and bots.
Don’t just think of bookkeeping as a job where ideally entering numbers will suffice. You should learn to crunch numbers in a quick compact way for which having an accounting background isn’t necessary. For a bookkeeper, it is mandatory to carry out all of the following functions-
• To note down all and every daily business trading and put it into that day’s entry.
• Always be ready with all source documents like an invoice that is necessary and important from a business point of view.
• To chronicle business affairs in numbers through the most simplistic and understandable way.
• To be meticulous in the calculations regarding money dealings.
BOOKKEEPING AS A PROFESSION
One ought to consider bookkeeping as a profession only if numbers are your friend. It is definitely not a territory to tread in by someone with dyscalculia. On a serious note though, bookkeeping is a job that requires you to juggle numbers day in and day out. For these purposes, one who is quite comfortable handling numbers is perfect and needed.
MODERNIZATION OF BOOKKEEPING
Earlier bookkeeping was an accountant’s desk job. To sit and to lodge daily ledger entries that were carried on throughout the day seems pretty mundane and monotonous. To improve upon the same, technology was put to use. From here on in the 1980s, manual entries for bookkeeping wasn’t preferred and everything went to virtual reality on a computer. This revamps in the field of bookkeeping brought about positive inevitable changes like speed, accuracy, stability, and storage.
EVOLUTION OF BOOKKEEPING
With the positive intrusion of technology in literally every domain of our lives, the part where manual bookkeeping was to be affected, pretty much was anticipated. Now there are no books to be used for bookkeeping since everything has gone electronic. The irony of the situation is pretty hilarious though. The genius ones should come up with a wittier name for it now.
Electronic bookkeeping has greatly reduced all possibilities of any mistake entry, wrong summation or document displacement.
With the wild use of computers, many online accounting applications and freelancers alike have surfaced. But the benefits of computerized bookkeeping are a game-changer. You firstly, get the computer high-end security that is potent and protective of all your confidential business-related data which otherwise would be accessible just by flipping the pages.
Then you are to avail of the perfect accuracy where you get more positive results for any entry you make. This reduces the chances of human fault by manifolds.
It is the bitter truth that the bots we created are now able to outrun us. In context to speed, it is the computerized bookkeeping that is more efficient and trustworthy. And also you get to save paper but in turn, run your device on electricity which is not such a positive add on.
The most important, however, is the easy gateway of accessibility that computerized bookkeeping creates. Any authorized office personnel can access the items in these ledgers and avail the documents too. With big physical registers, this was not possible.
FROM TRADITIONAL TO COMPUTERIZED BOOKKEEPING
In the days of the yoke, Bookkeeping was executed with the help of a register, pen, calculator, necessary relevant documents only. But now many Bookkeeping software is breathing about on the internet. These are both paid and free applications that are slick at the work they do. They manage your bookkeeping for you and are dependable too. Popular bookkeeping applications include Hubdoc, Botkeeper, ProSeries, Receipt bank, QuickBooks, TaxSlayer Books, and the list is endless.
The end result of whether doing a manual or computerized bookkeeping is to make sure that there has been a systematic, presentable, organized and accessible entry of daily business affairs. Through this, the experts are to further calculate the profit, loss and the necessary steps to be taken.
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