All About Bookkeeping And What To Watch Out For?
Bookkeeping is a very common process in any business, regardless of the size.
While most people will resort to professionals for this job, very small businesses can do just fine with someone who has an accounting background or experience with keeping the books.
To understand how the word bookkeeping is used to describe many different combinations of keeping track of financial transactions, and what is included in it, here is a short guide about bookkeeping services in UAE by AABDXB.
In General Terms
Bookkeeping may be seen commonly, as the same thing as accounting, because it involves handling daily financial transactions, and looking after receivables and payables.
On the other hand, as far as accounting firms and large companies are concerned, bookkeeping is seen to be more about recording the financial transactions in the relevant journals and books, and then putting these amounts into the ledgers.
In most cases, this is the end of the work of the bookkeeper, and from this point, an accountant, who will probably have a special accounting qualification, will handle things.
The accountant modifies these entries if there is a need for this, and readies the financial statements, and other required reports if there are any.
How Did Accounting Software Change Things?
Accounting software has made it easier for bookkeepers to carry out the work of accountants, and made everything in general faster.
Now all the bookkeeper has to do is prepare the sales invoices, and use computers and software to capture the vendor invoices.
Then the software will transfer all of the relevant entries to the ledger automatically.
Once you choose the format in which you want to see your financial statements, you can print the whole thing out in seconds.
What You Need to Be Careful About While Using The Software
Most of the versions of the accounting software used today require for the debit total to be equal to the credit total.
This level of accuracy means there is less chance of human error, compared to when all of these things are done by hand.
But this does not mean you can be relaxed about it. The software is fast and reliable but it cannot tell you that transactions are missing, or when they have been entered more than once.
Without the right kind of control and monitoring, transactions could be misplaced, and instances of fraud might rise.