OVERVIEW

 Bookkeeping process are essential for any business and are the centre of all small, medium
and large business accounting reports. Without the fundamental bookkeeping
processes, business owners or managers will not be able to keep control of their
company finances and yield useful management reports. There are two major
bookkeeping types of accounts you can use. They are:

 <ul><li>The
Single-entry Bookkeeping and </li><li>&nbsp;The
Double-entry Bookkeeping. 

</li></ul><ol><li>The Single-Entry Bookkeeping

The
Single-entry bookkeeping is normally used in small businesses, charity
organizations, societies and clubs only. It is either completed by using a
simple minor spreadsheet or book. It always shows the receipts on one side of
the worksheet and then the payments on the other. It also should include a date
and a short description above the Table is very crucial.

This
type of Bookkeeping is less expensive to maintain than the double-entry
bookkeeping.The business owner can handle it or he may choose to hire a trained
professional. It is the simplest and easiest way of keeping your accounts in
check and updated.

Majorly,
only the necessary essentials, such as accounts payable, accounts receivable
and taxes to be paid are recorded in single-entry bookkeeping.

</li><li>The Double-Entry Bookkeeping

The
Double-entry bookkeeping is the procedure that most big businesses use to
produce their financial accounts. Here, every transaction that takes place has
two entries. These entries are: a debit entry and a credit entry. This
accounting method would allow the business owner to keep track of the stock,
creditors, debtors,banks, assets and liabilities much easier and better.

Towards
the end of each business period a trial balance or a balance sheet is produced.
This document will show exactly where the business is positioned and how much
money it is owed or it owes. One can easily check for any mistakes that may
have occurred during the business period. The business balance sheet should be balanced;
if it is not balanced, then a mistake has been made. When there are mistakes in
the balance sheet then it is possible to draft a journal entry to correct the
mistake made.&nbsp;&nbsp;</li></ol>WHY IS BOOKKEEPING SO IMPORTANT
 
It
is much easier to forget to complete the bookkeeping process while you are so interested
about getting the sales and/or delivering the goods or services in real time.
However, it is very important. If a business owner or manager fails to keep the
record of the basics of small business bookkeeping updated, he may:
 
(1)&nbsp;&nbsp; Miss
Invoicing a potential or steady customer, 

(2)&nbsp;&nbsp; Forget
to chase up payment or 

 (3)&nbsp;&nbsp; End
up paying the bank some extra charges on overdrawn

Besides,
every individual ought to remember, whether you are self-employed or
Incorporated at the Companies House, it is a legal requirement and obligation
to keep track of accounting records and store them for a minimum of six (6) years.
 HOW OFTEN DOES BOOKKEEPING NEED TO
BE UPDATED

 The
decision on how often you require your small business bookkeeping and
accounting records to be done has to be made by you. You may choose to do it
little and often, probably set aside some time each day to ensure that your
business bookkeeping basics records are kept up-to-date. Sometimes it could
last for minutes and sometimes it could last for hours. It all depends on the
business activities that particular day.

If
your business is VAT registered, it will be required that it provides the sales
and purchase history when the VAT return needs completing and submission.

The
bookkeeping will be used to provide the business accounting basics reports –which
includes the financial and management accounts. These accounts always help both
you and other people working in that organization make financial decisions
regarding the business and makes way for suggestions on how to improve the
business. The more up-to-date the bookkeeping books are the better the business
will be handled and run successfully.

 OUTSOURCING MY BOOKKEEPING TO EXPERTS
 
Handing
over your business bookkeeping processes to an expert or a professional
bookkeeper or accounting technician is a useful way of freeing up your little time.
It involves hiring a professional to provide you with your management accounting
information and needs.

There
are lots of companies and businesses out there who can assist you with your
business bookkeeping process. It could be very difficult to choose the right
person.

A SAMPLE ARTICLE ABOUT BOOK KEEPING

Useful links

Company

Information

Content Writers

Freelancers

Freelance Jobs

Online Jobs

Designers

Developers

Translations