Bookkeeping

Bookkeeping is the foremost important step in the process of accounting which involves recording, daily, a firm’s financial transactions. A bookkeeper must set up financial statements so that an accountant can easily perform legal and tax management promptly. With proper bookkeeping, companies or individuals can track all information on its books to make key operating, investing, and financing decisions.
Precise bookkeeping is crucial to all the external users, which includes financial organizations, Investors, or the government – people or organizations that need access to trustworthy information for making better investments or lending decisions.
In simple terms, the entire economy leans on precise and reliable bookkeeping.
The disciplined bookkeeping counts for a large proportion of the accounting process.

Major Questions While Starting Bookkeeping

• Use single or double-entry bookkeeping?

  Single-Entry bookkeeping is just like keeping your check register listed. You record transactions as you pay bills and make deposits into your company account. It only works if yours is a small company with a low volume of transactions.
  If your firm is of any size and complexity, you will want to set up a double-entry bookkeeping system. At least two entries are made for each transaction. A debit is made to one account, and a credit is made to another account. That is the key of double-entry accounting.

• Use Cash or Accrual Accounting?

  One of the first decisions one has to make when setting up a bookkeeping system is whether or not to use a cash or accrual accounting system. If operating a small, one-person business from home or even a larger consulting practice from a one-person office, one might want to stick with cash accounting. If using cash accounting, you record your transaction when cash changes hands.
  Cash can be anything compared to actual money to electronic funds transfer. Many firms start their business using cash accounting and change to accrual accounting as they grow.
  If the firm is going to offer customers credit or if going to request credit from suppliers, then you have to use an accrual accounting system. Using accrual accounting, you record purchases or sales immediately, even if the cash isn’t received or given until a later time, such as in the case of Accounts Payable or Accounts Receivable.

We, the folks, at The Good Kiwi Accounting Services Company, provide you with accurate advice on laws of bookkeeping and the steps you should take while maintaining your books of accounts at every stage of your business with the help of our group of professionals, providing best accounting services.
We help you make sound decisions to maintain records of your firm and because we establish a one-on-one relationship with each of our clients, our advice will be tailor-made for your business’ bookkeeping helping you to breeze throughout the process of bookkeeping and keep the maintenance of your books hassle-free.

In the current era of fast-paced lifestyles where there is a demand for articles in bulk. To meet this demand, the firms and organizations have to maintain a steady supply of articles in bulk which in turn puts a strain in management. It becomes important to maintain books of accounts to avoid embezzlement, mismanagement, unnecessary expenses, and most of all to know where the money is flowing. Thus, Business Accounting has become an integral part of the management of firms, whether group or individual.