Different Types and Methods of Bookkeeping Systems
There were two different types about bookkeeping system. These are the single entry bookkeeping type of system and the other one is the double entry type of bookkeeping system. How are these two differs are being explain further below.
Learning on the two types of bookkeeping system is very necessary especially in identifying which of the two you will be going to adopt and be use in keeping your records of business-client transactions. Through studying the two different bookkeeping systems, you can easily determine which of it is appropriate to your business or to your client whom you want to serve.
Now you will be introduced to what a single -entry bookkeeping system is and what is a double -entry bookkeeping system:
1. The single entry bookkeeping system. Single entry Bookkeeping System is generally utilized by the bookkeepers for little organizations with next to no or insignificant exchanges. It is frequently alluded to as straightforward, down to earth and casual method for recording. For the most part, it just keeps up a record of money dispensing, money receipts, deals and buys. All whatever remains of the bookkeeping records, for example, stock, gear, capital, and so forth, are just recorded as update or notes.
2. The double entry bookkeeping system. This the standard way of a record-keeping which is commonly used mostly by the business ventures, accountants and of course the bookkeepers.read this post here!
The process of a double entry bookkeeping system is much detailed and more complex than of that single entry bookkeeping system. Here, the concept of debit and credit were being introduced which would mean that in every made transactions there will be something to receive which is the debit and there were to be given up which would mean a credit as being such that the recorded transaction will affects two or more of the accounts.
The advantage of a double entry bookkeeping system in your business is that it would have a procedures that will ensure that the work of the bookkeeper is accurate and there is a complete recording of any business task and transactions. This could serve you to be the reliable source of your financial information and a fair evaluation on the condition and or of the performance of your business.
The different methods in bookkeeping: After knowing about the two systems in bookkeeping, let us now talk about the two different methods in bookkeeping namely: computerized and manual.
1. Manual method of bookkeeping. This refers to the paper-based and a traditional method of bookkeeping. The business transactions are being done manually by the hands and or using paper for book of account, like ledger books, journal books and worksheets. This method is being used widely especially by most of the small business owners with less needs for their firm. Many of them choose to use manual bookkeeping since it is much cheaper and are easy to maintain. However, the recording process of the bookkeepers are quite tedious than using the computerized method of bookkeeping.continue reading this http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-crown-point-funeral-home-theft-st-0427-20160426-story.html for more information.
2. Computerized method of bookkeeping. This a new and more innovative method of making records on business transactions. With the help of using a bookkeeping software, the process on bookkeeping jobs had become more easy, fast and convenient for the bookkeepers.
Always take into considerations that the concept and principle of the traditional bookkeeping procedures must still be used and be observed in computerized bookkeeping method. Few from small businesses were not using a computerized bookkeeping since this will cost them a lot than using a manual bookkeeping and aside from it, small business firms do not want to be involved in such technical trainings. However, most of the business ventures still prefer to use a computerized method because of its reliability, efficiency and convenience.