Accounting Coach: Introduction to Bookkeeping

Various online educational websites provide online coaching in very easier way which any would understand and learn the topics easily, so that, the bookkeeping courses are also offered by various popular and authentic educational websites. Accounting Coach is also this type of educational website which provides easier way understanding and learning courses from your home through the premium materials which they provide through their website, hence, paying some fee which allow you to get registered with them having lifetime access to their materials.

These materials are available in the form of online video lectures. They also provide various types of tests after learning the courses from the video lecture which should be passed to get the certifications and much more. In their introductory course, they provide guidance to the Introduction to the Bookkeeping keeping focus on the various concepts related to bookkeeping:

  • Accounting is considered as like bookkeeping by the various experts in the field. For instance, they think that the tax reports preparations, companies book as well as its financial statements are often kept in record through the bookkeeping systems as well as its parts. Hence, this view is not often supported by the accountants.
  • According to various other views, daybooks and journals’ transactions are only the parts of bookkeeping which are later maintained into the form of ledgers. When these amounts from the daybooks, journals or ledgers are being posted then the process of keeping is completed, right after the work of accountants is started. Later, the financial statements are made through adjusting these entries by the accountants.
  • Henceforth, the above-mentioned conditions which distinct both bookkeeping and account from each other happened utilizing the computer and computer-based accounting software when bookkeeping and account comes on the computer. A person could learn bookkeeping who is already an accountant through a basic training, and he or she can maintain this all utilizing the accounting and all types of account invoices would be recorded through this software and this automated software updates the ledger automatically. And later, through a single, the financial statements could be generated establishing the format.

The relationships and differences between bookkeeping and accounts can be learnt through this Basic Introductory Course provided by Accounting Coach to maintain the confidence and knowledge amongst individuals related to accounting business.

Process of Bookkeeping (Single-Entry System)

The bookkeeping manner in particular archives the monetary consequences of transactions. An essential difference between a manual and a digital accounting machine is the former’s latency between the recording of an economic transaction and its posting in the applicable account. This delay, which is absent in digital accounting structures due to almost instantaneous posting to relevant accounts, is characteristic of manual systems, and gave upward thrust to the foremost books of accounts—cash book, buy books, income book, etc.—for without delay documenting a financial transaction.

In the occurrence of a transaction, in the everyday course of business, it produces a document every time. Receipts or invoices are often involved in sales and purchases system. The lodgment (deposit) inventory system also produces the deposit slips. Cash withdrawal is often performed through written checks in this process. Having journals which are often multi-columns, the important points are kept recorded, and all the sourced are kept saved in this way. This system of bookkeeping is called daybook system. For instance, income journal keeps the record saved related to deposit income. Moreover, journal of the cash repayments keeps the record saved related to money repayments. An account is often correspond through each column in a journal. If a transaction is added in the single-entry system one time, it wouldn’t be entered a second time, so that, each transaction would be a new transaction. This approach is often followed by software program related to personal finance. So that, this type of system is often utilized by those individuals who maintain/balance their accounts through a check-book.

Henceforth, after this single-entry system, the double-entry system starts it work. For example, for a monthly balance report which is often calculated every month in each financial system. The summary of the monthly report is totaled in each journal into each column. Furthermore, account book or ledger system work through the basic rules of the rules of double-entry system.

Bookkeeping and Accounting Courses

Bookkeeping and accounting often work together. People often learn basic and advanced essential skills in these courses. The basic skills involve various numerical skills related to bookkeeping as well as accounting. These courses are often based on step by step introductory and advanced lessons and lectures related to bookkeeping and accounting involved. For instance, at the initial stage, double-entry bookkeeping skills are taught, and the profit and loss accounting related to balance sheet is also taught. Hence, for a specific period, in this systematic process of occupation of bookkeeping, financial information is often summarized, recorded, analyzed and reported for a business. Various online offers basic courses for free, yet, charge for advanced courses.

Differences between Bookkeeping and accounting:

Bookkeeping:

Concerned with recording of financial transactions.

It is the beginning stage and acts as a base for accounting.

Objective of Bookkeeping is to keep records of all financial transactions.

Financial statements are not prepared as a part of process (journal and ledger books of accounts are prepared).

Does not help management in decision making.

Bookkeeping does not reflect the financial position of an organization.

simple in nature.

performs fixed or limited set of tasks.

Does not require any personal skills and qualifications.

It depends on accounting in order to make the accounting records more meaningful.

Accounting:

Related to summarizing, interpreting and communicating financial transaction.

Accounting begins where bookkeeping ends.

Objective of Accounting is to show the financial situation of the company.

Financial statements are prepared in the accounting process.

Accounting helps management in decision making.

Accounting reflects the financial position of the organization in different perspectives.

very complex in nature. Because has various standards and formats.

Performs a variety of challenging tasks. It has to perform various challenging tasks.

Accounting requires special skills and qualifications. He has to knowledge about accounting.

It depends on book-keeping in order to get the accounting records and make them meaningful.

Financial Bookkeeping

The term bookkeeping is often defined as the activity of keeping records of the financial transactions in a company. Bookkeeping involves the work of a bookkeeper, who records the day-to-day financial transactions of a business. An accountant creates financial reports from the bookkeeper recorded information.

Bookkeeping involves mainly the record keeping aspects of financial accounting and involves preparing source documents for all transactions. Bookkeeping involves the systematic recording of financial aspects of business transactions in appropriate books of account. For instance, bookkeeping includes rent expense, wages expense, sale, cash and loans etc.

Impotence of Business Bookkeeping:

Bookkeeping keeps an importance in business as the analysis of business is often supported through it. The management of the business takes help from bookkeeping and uses it as a tool the performance of their business. For the appropriateness of the records (especially financial) of the involved parties in the business, the bookkeeping helps to locate it in an easy way. For instance, the financial statements could be included in bookkeeping as its products.

The performance of the companies relies in the proper bookkeeping. The income goals and revenue of the companies could be benchmarked through general strategic decisions.

The current financial status of the companies could not be measured without proper bookkeeping, and the transactions which they make.

Qualities of a Bookkeeper:

Qualities of a bookkeeper are following:

1 – A bookkeeper maintains the efficiency and accuracy of a business’ financial books.

2 – A bookkeeper may require a certain amount of technical knowledge or professional expertise.

3 – They expects the basic financial report, such as the Profit and Loss and Balance Sheet, and updates with regard to cash flow.  

4 – A bookkeeper looks for knowledge.

5 – A bookkeeper keeps strong Computer Skills.

Bookkeeping Courses and Certificates

The program offers students the opportunity to obtain a through practice and understanding of bookkeeping techniques. And it teaches how to apply them in both manual and computerized environments.

Bookkeeping Course Entry System

This program offers students the opportunity to obtain a through understanding of bookkeeping techniques and practices and how to apply them in both manual and computerized environments 

Bookkeeping courses includes accounting basics and also includes financial accounting.

It also includes chart of accounts.

  • Accounting basics
  • Financial accounting
  • Chart of accounts

Entry systems

Two bookkeeping methods is most common use today are the single-entry bookkeeping system and the double-entry bookkeeping system.

.Single-entry bookkeeping is  for many small businesses; it uses only income and expenses accounts recorded primarily in a revenue and expenses journal. 

In the double-entry system, at least two accounting entries are requires to properly document each financial transaction. These entries may be record to asset, liability, equity, expense, or revenue accounts.

Single-entry system

The primary bookkeeping includes record in single-entry bookkeeping is the cash book, which is similar to a checking accounts register, except all entries are allocated among several categories of income and expense accounts. 

Separate accoun incldes the records are maintained for petty cash, accounts payable and receivable, and other relevant transactions such as inventory and travel expenses. To save time and avoid the errors of manual calculations, single-entry bookkeeping can be done today with do-it-yourself bookkeeping software.

Double-entry system

double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts.

Computerized bookkeeping Entry

Computerized bookkeeping removes many of the paper “books” that are used to record the financial transactions of a business entity; instead, relational databases are used today, but typically, these still enforce the norms of bookkeeping methodology including the single-entry and double-entry bookkeeping systems. CPAs supervise the internal controls for computerized bookkeeping systems, which serve to minimize errors in documenting the numerous activities a business entity may initiate or complete over an accounting period.