What business owners should know about accounting and bookkeeping.

[TOZZIBLINKZ]

Sometimes majority of business owners who own and control huge business organisations and other commercial Enterprises and outlets are actually mistaken of what it means to practice accounting and to practice bookkeeping in a business organisation . It is very important that every business owner understands how important the business activity of bookkeeping and accounting is important to his or her business and every business ownership and devil to practice this to business activities and practices because they're absolutely affect the successful and potential rate for a particular business to actually be successful and to grow and develop . As the name implies the accounting of a business organisation is actually carried out by an accountant but if the business is actually a self-employed kind it is actually carried out bye the business owner possibly the sole proprietor . By definition accounting simply means the recording , strategizing, processing , calculating , and the interpretation of the business books of account so as to make profiting and interesting business decisions thereof .

On the other hand business bookkeeping is actually carried out by a business bookkeeper and it actually has to do with the keeping of business books of account in good and proper conditions so that information could actually be easily retrieved no matter how old the information is . Business bookkeeping simply have to do with the documentation and the filing of business books of account in good and proper condition not keeping them scattered all around making the business organisation environment unappealing possibility to individuals coming in and going out . Whatever the case may be , business books of account must be constantly analysed possibly by the business accountant or by the business owner himself or herself , and this can only be made possible if the business books of account are actually kept in good and proper condition by the bookkeeper so as to be handed over to the business accountants when the need arises , or when the analysation of business transactions of the particular business is dued to be analysed . In essence accounting and bookkeeping are totally interrelated to each other and one cannot do or exist without the other .

 

[CALVINDOL]

First and foremost every businessman or a woman must actually understand that the two business activity of bookkeeping and accounting is mandatory for all business to practice whether the business is in large-scale or small-scale it is absolutely mandatory and speculated that the business was practice the business activity of bookkeeping and accounting . Just like you already mention accounting is the act or the business activity of recording and interpreting financial business that is so as to make a benefiting and positive decision about the business . And on the other hand bookkeeping is referred to the safekeeping of the business books of account so that they could be easily and swiftly retrieved when needed or when analysation of the business books of account is due for analysation possibly at the end of a particular month or at the end of every passing year .

The accounting process of a particular business is actually carried out by a business accountant but if the business is of a self-employed kind it is probably carried out by the business sole proprietor and on the other hand the business bookkeeping is carried out by a business bookkeeper but if the business is of a self-employed type it is probably kept safely by the sole proprietor or the owner of the business for safe retrieval of business records .

 

[Jasz]

Accounting and bookkeeping are two terms that are often used interchangeably, but they don't mean the same thing. Accounting is the process of recording, processing, and reporting financial activities. Bookkeeping is the process of maintaining records of business transactions and preparing financial statements.

Bookkeeping is a necessary skill for any business that needs to keep track of its financial activities. Bookkeepers use accounting software or spreadsheets to manage their businesses' financial records, which can include everything from accounts receivable to cash balances. They also provide reports on revenue, expenses, and profits. Bookkeeping helps you keep track of all of your financial transactions and make sure that they're accurate. It also helps you prepare tax reports for your accountant so that they can file taxes properly with Uncle Sam's help

In most cases, a bookkeeper will work closely with a business owner or manager who oversees the accounting function in order to make sure all transactions are recorded correctly and that everything is reported accurately in the proper format.