Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually performed by an accountant. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies. There are some common methods of bookkeeping such as the single-entry bookkeeping system and the double-entry bookkeeping system. But while these systems may be seen as “real” bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.
A bookkeeper also known as an accounting clerk or accounting technician, is a person who records the day-to-day financial transactions of an organization. A bookkeeper is usually responsible for writing the “daybooks.” The daybooks consist of purchases, sales, receipts, and payments. The bookkeeper is responsible for ensuring all transactions are recorded in the correct day book, suppliers ledger, customer ledger and general ledger.
As you can see, bookkeeping and accounting tasks are not easy. They bring a lot of responsibility with them. A bookkeeper and an accountant are responsible for every data they enter. They are the ones who will be responsible if some of the data is not true or there has been a mistake. Bookkeepers and accountants are one of the most important partners who can give you valuable information about every process that is going on in the firm. Thus, due to the importance, sensitivity and skills required to perform these task, professionals should entrusted with your accounting. They should also understand your needs and goals. At Bright New World, we pride on gearing our services to your business’ uniqueness and will be happy to show you so.