There are various transactions that are carried out as businesses are run comprising of sales, purchases, and receipts among others. Small business bookkeeping services involved the keeping of financial records usually done by the accounting department. Usually, there exists several methods of maintaining the said records for instance, double and single accounting system of entry. The criteria of choosing the method to use depends on the type of business, size of transactions and the frequency of keeping records.

A clerk or accounting technician is the person that performs the role of a bookkeeper. Their main duty is upholding of commercial dealings of the enterprise. It includes sales, purchases, debtors, creditors and utility payments made, for example water bills. The clerk should ensure that all records made are correct and completed in an applicable book.

The main difference between the single entry and double entry accounting systems is that, the former excludes records of assets and liabilities, for example the cash books. Whereas the latter includes assets and liabilities so as to satisfy that the assets of business are equal to the total liabilities and equity, for instance the balance sheet. The single system is preferred for daily cash disbursements while the double system is preferred for long term accounting purposes.

The importance of such services in businesses include, better planning, precision in fulfilment of tax obligations, sourcing for investors and more often than not is a requirement by law for auditing purposes among others. The implications of not having an efficient system are delayed payments to suppliers, difficulty in noticing inconsistencies day to day handling, slow growth of the enterprise and higher tax penalties. For small enterprises that are extremely unstable record taking is vital for growth and future projection.

Bookkeeping largely accounts for the profitable effects of enterprise cash dealings or transactions. The manual and electronic accounting techniques contrasts in the prospective of recording of cash deals and appointment in the correct account. The electronic is system is instantaneous while the manual is largely characterized by delays.

When a small organization has a good accountant, he/she make certain that proper records are being kept in order to avoid any examples of errors. This help in ensuring that this business grows in an efficient as well as effective manner. Nevertheless, due to the size of the business, a business owner may make the decision of keeping and maintaining records on his own. In such a case, it is recommended that he have basic knowledge of accounting.

Furtherance, the owner who does the accounting on his own requires to have records of all receipts be it cash or the purchases, and the invoices involving the expenses of the particular organization. These include bills such as electricity and water, bank statements and credit card, among others. In case the business have employees, the manager ought to keep the records on payroll.

In summary, the accounting clerk should work out a trial balance of the expenses and incomes. Income revenues as well as balance sheets are organized using the data collected in previously in the sample balance. Record keeping is however essential regardless of technique that the accountant decides that is their preferred choice of usage.

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