Bookkeeping is a fairly straightforward kind of accounting, and can be seen in all walks of life. However what kind of industry needs bookkeeping? We show you the businesses that need it most, and others where financial accounting might be better.
What is bookkeeping?
Bookkeeping is a system recording financial transactions including sales, expenditure, purchases and receipts. Bookkeeper records is as ancient as 2600 BC Babylonia where a rudimentary form of bookkeeping was discovered. There are different systems like the single and double entry bookkeeper systems. A single system relies on one sided book entry and a double requires a corresponding entry for any transaction. Often a bookkeeper system will have a delay due to the fact it will be pending for an effect to take place from the transaction.
Where can bookkeeping be most effective?
Bookkeeper systems tend to cater more for a local market rather than a multinational market due to the expertise in the local regulations with financial transactions. Bookkeeper systems are also more manual so would be a local accountancy firm. A local bookkeeper in Melbourne which is highly recommended is Bookkeeper Melbourne co and their website is www.bookkeeperco.com.au. If your finances are fairly uncomplicated in nature (no international transactions and customers are local), a simple bookkeeper system would be better.
For example if you have a floral business, you may require a bookkeeper to help track your expenditure and outgoing costs (stock, materials, wages) and revenue, and help you collate onto a spreadsheet for you.
However, if your business is larger, you may need a bookkeeper to only track a specific cost. For example, you are a construction manager with 7 employees and need a spreadsheet to know how much a new property development will cost. This might include the cost of a new project, detailed breakdown of cost and estimated outgoings.
If your business is larger still, you may only need to hire a bookkeeper for more specific costs. For example, you are the owner of a small manufacturing plant, and need to know how much it costs to hire more people. You can ask the bookkeeper to create a spreadsheet to estimate he costs and eventual profits generated from the additional hire. Financial accounting might prove to be better as they have more applications, resources and expertise at their disposal.
If you are a business owner with a few employees, a bookkeeper is vital, no matter what industry you want to join. Whether it’s for a small floral shop, a software consultancy or a small franchise, you can be sure a bookkeeper like Bookkeeper Melbourne co can help you with your accounting needs. However, if your needs are more specific and require financial estimates, a payroll operation or something to that effect, a financial accountant or consultant may be better. This is because they are more likely to have more expertise, knowledge, industry insight, applications and resources than a bookkeeper.