During the running of businesses there are several transactions that are included such as, purchases and sales and many more. Accounting department is in charge of small business bookkeeping services which comprises of the keeping of the monetary records. There are several ways of keeping the records such as, single and double entry accounting system. The method chosen relies on various factors such as size of business and the type of transactions handled on a regular basis.
These services are performed by a bookkeeper who is also referred to as an accounting technician or else an accounts clerk. They play the role of maintaining daily commercial transactions of the enterprise. These could include purchasing of stock, sale of items, creditors, debtors and also payments made such as water and electricity bills, just to mention a few. This accounting technician should ensure that the entries made are correct and made in the appropriate book.
The main difference between the single entry and double entry accounting systems is that, the former excludes records of assets and liabilities, for example the cash books. Whereas the latter includes assets and liabilities so as to satisfy that the assets of business are equal to the total liabilities and equity, for instance the balance sheet. The single system is preferred for daily cash disbursements while the double system is preferred for long term accounting purposes.
The importance of these services to businesses include, better business planning, fulfillment of tax obligations, source for investors and is a requirement by the law for auditing reasons among others. The effects of having inefficient system, can be delayed payments to the suppliers, challenges in noticing inconsistencies in the business, minimal growth of a firm and high tax penalties. For the small entities records are not bulky and can be kept on a daily or monthly basis.
The process of record keeping chiefly accounts for commercial effects of the transactions merely. What varies between the electronic and manual is the potential of recording of the monetary deal and placement in the applicable account. The delay is the main characteristic of manual systems and is absent in electronic as it is instantaneous.
When a small organization has a good accountant, he/she make certain that proper records are being kept in order to avoid any examples of errors. This help in ensuring that this business grows in an efficient as well as effective manner. Nevertheless, due to the size of the business, a business owner may make the decision of keeping and maintaining records on his own. In such a case, it is recommended that he have basic knowledge of accounting.
If one decides to do the accounting personally, it is a requirement that all records taken be it of purchases, invoices and all other expenses of business are kept safely. The expenses commonly comprise of transactions such as bank statements, electricity bills and many more. In an instance that the organization has employees, the accountant should ensure that all payroll records of every single employee are always kept correctly.
In conclusion, the accountant should compute a trial balance consisting of incomes and expenses. Balance sheet as well as income statements are also prepared using the data and information from the trial balance. Whichever the method used record keeping is essential.
These services are performed by a bookkeeper who is also referred to as an accounting technician or else an accounts clerk. They play the role of maintaining daily commercial transactions of the enterprise. These could include purchasing of stock, sale of items, creditors, debtors and also payments made such as water and electricity bills, just to mention a few. This accounting technician should ensure that the entries made are correct and made in the appropriate book.
The main difference between the single entry and double entry accounting systems is that, the former excludes records of assets and liabilities, for example the cash books. Whereas the latter includes assets and liabilities so as to satisfy that the assets of business are equal to the total liabilities and equity, for instance the balance sheet. The single system is preferred for daily cash disbursements while the double system is preferred for long term accounting purposes.
The importance of these services to businesses include, better business planning, fulfillment of tax obligations, source for investors and is a requirement by the law for auditing reasons among others. The effects of having inefficient system, can be delayed payments to the suppliers, challenges in noticing inconsistencies in the business, minimal growth of a firm and high tax penalties. For the small entities records are not bulky and can be kept on a daily or monthly basis.
The process of record keeping chiefly accounts for commercial effects of the transactions merely. What varies between the electronic and manual is the potential of recording of the monetary deal and placement in the applicable account. The delay is the main characteristic of manual systems and is absent in electronic as it is instantaneous.
When a small organization has a good accountant, he/she make certain that proper records are being kept in order to avoid any examples of errors. This help in ensuring that this business grows in an efficient as well as effective manner. Nevertheless, due to the size of the business, a business owner may make the decision of keeping and maintaining records on his own. In such a case, it is recommended that he have basic knowledge of accounting.
If one decides to do the accounting personally, it is a requirement that all records taken be it of purchases, invoices and all other expenses of business are kept safely. The expenses commonly comprise of transactions such as bank statements, electricity bills and many more. In an instance that the organization has employees, the accountant should ensure that all payroll records of every single employee are always kept correctly.
In conclusion, the accountant should compute a trial balance consisting of incomes and expenses. Balance sheet as well as income statements are also prepared using the data and information from the trial balance. Whichever the method used record keeping is essential.
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