Bookkeeping is an important part of the procedure of management in various organisations and business, and is often regarded as the backbone of the whole procedure. It involves preparation of resource documents for any financial activities, operations, and so on of an organisation. It is also responsible for maintaining accurate ledgers, books of accounts and payrolls, which are instrumental in the processing of various financial transactions of an organisation. Bookkeeping is thus one of the most important aspects of any business, as it can have a direct effect on the performance of an organisation.
The bookkeeping process is an integral part of any enterprise, be it a small scale firm or a huge one. All the financial transactions made in a company need to be recorded in a proper way so that later for analysis, it can be easily understood and all the transactions can be related with each other. For this, a separate bookkeeping department is required, which will keep all the records regarding all the transactions that are made in a day’s work of an organisation. There are several companies available who provide the service of bookkeeping, but it is important to choose the best among them so that the entire process can run smoothly and easily.
The entry-level position in bookkeeping is occupied by the individual who has been given the responsibility of maintaining the correctness and completeness of the books and journals. This person is called the bookkeeper, and his job is not so much related to the actual transactions that he does everyday but more over to the daily task of inputting the data into the computer systems, which is updated regularly.
Since, the accountant is more concerned with the actual financial statements, the entry-level positions in accounting such as the bookkeeper is considered less important than the accountants. In addition, some of the companies do not hire accountants for their everyday tasks because they feel it is a time taking process, which is also the case with bookkeeping.