Advantages And Disadvantages Of Bookkeeping

| Used to keep track of all the financial transaction in a business such as all items purchased, all bills paid, and all payroll calculations

The three procedures of accounting and bookkeeping assist an individual in recognising the most effectual use of capital incomes, gauging the properties of the cost controls across their finances. The accrued economic data is collected into usable data facts and reports are summarised for their decision-making procedure. By recognising and gauging costs, individuals can transfer capital to advance productivities and decrease costs.

Firstly the role of accounting is to record business transactions in a systematic way, for instance recording the amount of sales made to customers by John Lewis. This is done by the business to keep the records accurate and updated as well. If bookkeeping is done incorrectly, this will result in the business processing wrong payments or billings. For instance, if John Lewis does not do bookkeeping, the business will end up making payment to wrong suppliers.

Profitability is an important criterion to judge the success of the business. Accounting has a big role in determining business profitability. Using accounting we can maintain proper records of all business dealings, which later on assists in computing business profitability. It is only accounting due to which we can easily make financial statements at the end of each accounting year and find out the profit earned or loss suffered in the business. Thus, Accounting provides us significant information which we further analyze and come up with material conclusion or decision.

1) Book-keeping is the art of keeping and maintain accounts in the prescribed manner whereas accounting is mainly concerned with the design of the system of records, preparation of reports based on the recorded data , and interpretation of the reports.

All businesses and organisations have to check to see that the information they have stored is accurate. For example, the money coming in and going out have to be correctly recorded otherwise it will look as if the company has not made much profit and it can affect the share prices of the company, affect the employees as the company might not be able to pay the employees and will have to cut down on staff, lenders will not agree to lend money, etc.

Accounting is commonly described as the language of business. It is very important for all business owners to have very good understanding of their finances. Having the knowledge of your business finance, you will know where the money is going. Every business owner should have a good understanding of finance. To have a good understanding business owners needs to understand basic accounting steeps, how does accounting play a role in their business, how to define a financial statement and how the omission of any of these steps would affect the success of a business. Once you have an understanding of accounting/finance and the how it plays

Do you enjoy mathematics? Businesses run on numbers and it's the accountants that keep track of them. Business accounting may include keeping a general ledger, handling payroll accounts, tracking cash flow or managing employee benefits. Business accounting requires the use of a software program that manages the database and that can be programmed to produce the reports required by management. An accounting degree or business administration with a focus on finance is a solid base, while an MBA with focus on accounting or finance will propel you into a leadership position in your employer's fiscal affairs.

(1) bookkeeping or other services related to the accounting records or financial statements of the audit client;

This process is referred to as bookkeeping, which is simply entering each transaction that affects the financial position of the business in a ledger.

In today's time the accounting and book keeping ranges from the old way of paper and pen to extremely large accounting data base systems for the major companies and organizations around the world; although either system could be used but

Accountants also ensure that organized financial statements are put out so that their company’s investors and lenders can accurately evaluate how a business is doing. One of the fundamental financial statements is the balance sheet. This

Record-keeping and book-keeping is the disciplined and orderly practice of storing financial loss, gain, producing invoices, depositing incoming cash and checks, tracking donations and work purchased items. Business

Consequently, accountants are quite important to a business society being able to function. Even the smallest of businesses need an accountant. Their careers serve various purposes in a business from recording profits and other numbers to helping construct budget decisions that influence how well the business will run and prosper. Businesses need to price their products and consider using three elements of cost, overhead, and profit margin. An accountant can create

Financial accounting statements can help a user to make future decisions by showing the concerned business’s health. It shows where money is being generated, spent and lost, depicting the financial performance and financial position. The statements can also help in situations such as raising fresh capital in the form of a loan, e.g. a bank will most likely require these statements to show the business’s credibility or worthiness. The statements help influence managerial decisions on which direction the business needs to head, and how to best maximize profit.