To quite a number, bookkeeping and accounting are often taken to mean the same thing. Such confusion can be understood as it is the case that the one, the bookkeeping services, happen to be such a core part of the other, the accounting processes.
In a nutshell, bookkeeping can be generally understood to be the act of keeping the books of accounts of the company, the day to day process of keeping the full and exact, up to date records of the financial transactions of the company. These particular financial records and transactions of a company happen to be detailed and include all the records of the daily purchases, sales, incomes, receipts and payments that may have been made by the company on a daily basis.
In most cases, the financial transactions to be captured for bookkeeping purposes are often handled by the bookkeeper. Considering the fact of the sensitivity of the role played by the bookkeepers, as they get to keep track and record all the kinds of sensitive financial records and transactions of the company on a daily basis, it as such gets to be so apparent that one of the most important human resource assets a business will need for its survival are the bookkeepers. By far and large, it is the company’s bookkeeper who will be tasked with the enormous responsibility of keeping on track the company’s entire financial records such as ensuring that the entirety of the details of the day to day financial operations in the business are recorded, the cash inflows and money getting out are well captured in the right books of account in the business. These particular records are often captured in a number of the business records such as the customer’s ledger, the supplier’s ledger and the general ledger and after then they will be brought to the trial balance stage in the accounting process for them to be used by the accountant to prepare the company’s financial statement and balance sheet at the end of each trading period as is set by the business.
Generally speaking it is often the case that a bookkeepers responsibility will often vary from one organization to the other all depending on the factors of the size of the company and the manner that they have set their duties and responsibilities spread amongst their employees. With this background in mind and looking at just how sensitive the task and responsibility of the bookkeepers go, you need to ensure that you have indeed found the most competent and qualified, organized as well personnel to handle your business’ bookkeeping needs. This is actually one of the most valid reasons why it will be so wise a step to have outsourced accounting and bookkeeping services for your business as it saves you so much time and allows you focus on the other professional aspects of your business.