Bookkeeping

Bookkeeping is the process of recording, classifying and summarizing financial transactions of an organization in a form, which is easily understandable. It entails making records of day to day financial transactions of an organization. Corporates are outsourcing bookkeeping service to specialists and hence save time, improving efficiency by concentrating on more important issues.

Types Of Bookkeeping Services

Single Entry System: The single-entry system of bookkeeping is an 'Informal' bookkeeping system emphasizing on the determination of profit and loss in organizations. A daily summary of all the cash receipts and cash payments is made in this kind of bookkeeping system. There is only one entry for each transaction. This system suffers from various drawbacks and hence is no longer in use. A check book is an example of single-entry bookkeeping system.

Double Entry System: The Double-entry bookkeeping system is a 'Formal' bookkeeping system in which every financial transaction is recorded twice. The double-entry system has built-in checks and balances and is more accurate than single-entry system. It is self-balancing. This system is a complete accounting system and focuses on the income statement and balance sheet. Almost every organization follows the double-entry bookkeeping system.

Benefits of Outsourcing Bookkeeping Service

• Organisations can concentrate on more important issues.
• Reduction in manpower requirement for maintaining books of accounts.
• Specialised personnel maintaining the books of accounts reduces chances of errors.
• An organization can check its financial transactions and position anytime.