Bookkeeping is an indispensable part of every business, and bookkeeping helps a business to track financial activities of the company. Bookkeeping can be defined as the process of recording financial transactions, preparing data records for all financial activities, transactions, and others of a business. The main aim of bookkeeping is to maintain a complete account of all the financial transactions of the company, from the income of the business to its total expenses and sales.
All these transactions are recorded in the books of accounts of the company and it is very important to keep the books of the company maintained by the accountant and bookkeeper. Bookkeeping plays an important role in the financial decision making of an organization, which determines the future of the business. Bookkeeping helps the accountants analyze the financial position of the company and come up with the required strategies to improve their sales and profits. There are various types of bookkeeping records like invoices and receipts, accrued funds, current assets, capital assets, liabilities, surplus funds, financial liabilities, financial transactions, tax payments, banking records, inventory, payables, loans, mortgages, and other kinds of financial statements.
A person who is interested in being a bookkeeper or bookkeeping professional must be qualified in accounting principles, computer skills, logical reasoning, bookkeeping discipline, interpersonal communication skills, problem solving abilities, ability to organize and follow information, time management and mathematical skills. Some of the basic requirements of getting a degree in bookkeeping are completion of a bachelor’s degree, accounting associate’s degree, or a related degree and work experience in a related field. Bookkeepers also play a vital role in auditing. They record the financial transactions in the accounts and ensure the accuracy of the same.
Bookkeeping services are offered by many firms, both private and public, that include accountants, auditors, bookkeepers, and finance managers. They are needed in every business organization to manage the day-to-day accounting operations and record all the financial transactions of the company.