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.