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.
A bookkeeper is the one who is tasked with the duties of, sustaining commercial transactions of an enterprise and in some cases is referred to the accounting technician. The responsibilities availed should include taking monetary records pertaining, purchase of stock, creditors, sale of items, debtors as well as payments made including water together with electricity bills. They should also ensure that entries made are done in the suitable book.
The variation between the two commonly used recording structures lies in the design and content. In using the single system one should not include records of liabilities and capital and is thus preferred when taking down of daily cash disbursements, for instance the Cash Book. On the other hand in the double one, one is required to include the liabilities and equity and is used for purposes of long term analysis of transactions made with a good example being the Balance Sheet.
It is important for businesses to include such services this is so as to ensure better planning, presentation to potential investors, tax obligation fulfillment as required by law. The disadvantages of not including such services include delayed transactions, trouble in realization of discrepancies in financial transactions, greater tax fines and sluggish development of the enterprise. Small enterprises consist of records that are small and hence kept on a monthly or daily 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 sized organization has an effective accountant, he or she can make certain that the proper records are kept in the right order to minimize instances of errors. This helps in ensuring that the establishment grows in an efficient and effective manner. However, due to its size, an enterprise owner may solely decide that the keeping and maintaining of records be done by him. In such a case, it is advised that he possess the 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.
Ultimately, computation of a trial balance is needed. It is from this that statement of income and balance sheets are formulated. Important to note is that book keeping is crucial to a business.
A bookkeeper is the one who is tasked with the duties of, sustaining commercial transactions of an enterprise and in some cases is referred to the accounting technician. The responsibilities availed should include taking monetary records pertaining, purchase of stock, creditors, sale of items, debtors as well as payments made including water together with electricity bills. They should also ensure that entries made are done in the suitable book.
The variation between the two commonly used recording structures lies in the design and content. In using the single system one should not include records of liabilities and capital and is thus preferred when taking down of daily cash disbursements, for instance the Cash Book. On the other hand in the double one, one is required to include the liabilities and equity and is used for purposes of long term analysis of transactions made with a good example being the Balance Sheet.
It is important for businesses to include such services this is so as to ensure better planning, presentation to potential investors, tax obligation fulfillment as required by law. The disadvantages of not including such services include delayed transactions, trouble in realization of discrepancies in financial transactions, greater tax fines and sluggish development of the enterprise. Small enterprises consist of records that are small and hence kept on a monthly or daily 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 sized organization has an effective accountant, he or she can make certain that the proper records are kept in the right order to minimize instances of errors. This helps in ensuring that the establishment grows in an efficient and effective manner. However, due to its size, an enterprise owner may solely decide that the keeping and maintaining of records be done by him. In such a case, it is advised that he possess the 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.
Ultimately, computation of a trial balance is needed. It is from this that statement of income and balance sheets are formulated. Important to note is that book keeping is crucial to a business.
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