Monday, July 19, 2010

Deciding Between Bookkeeping Software and Bookkeeping Service

Bookkeeping - the record of day to day financial transactions such as sales, purchase, income and payments by an individual or an organization. These records needed to be produced at the end of every financial year. From small to medium to large business, maintaining financial records is a mush which therefore necessitates bookkeeping process.


The choice of preparing and producing the accounts: organization basically have three options: one is to prepare and maintain records manually; next can be to employ the bookkeeping services and the last option is to use bookkeeping software system.Each has its own advantages and disadvantages. What ever may be the employed method, the ultimate thing is to produce accurate accounting information needed on time.


As the recorded financial transaction is very important for financial decisions and knowledge over the business performance, efficiency and accuracy over the recorded transactions becomes the major concern. Further, the accounting information is the accumulation of documents such as sales invoices, purchase invoices and possibly bank records during the financial year and after the end of the financial year for tax purposes.


Improper records of the above said data (as financial records) leads to unwanted penalties, simply administrative burdens. In analyzing the choices: keeping and maintaining manually may lead to data lose, inaccuracies, fines and penalties thus leading to severe issues at the end of the financial year.


Manual bookkeeping needs regular and periodic evaluation of the data. In going for the choice of having a bookkeeper, trust and knowledge over the operation becomes the mandatory thing for any organization. Also periodic and regular tracking of the works and records maintained is necessary. Having bookkeeper, it is also partially includes in manual work where accuracy level is still depends on the knowledge of the bookkeeper.


The third choice of installing bookkeeping software also has few disadvantages. But these are overruled by its wide advantages. The major advantage is the reduction in paper work and 90% of reducing the manual work thereby achieving accuracy and efficiency. By having bookkeeping software, no one other than the business owners and the authorized person know the financial status which can be called as the security over the accounts.


So by having the gist in hand, the advantages and disadvantages over the choices can be analyzed as discussed above. It can be said with proof that accounting software provides better financial control and performance over the others: manual bookkeeping and having bookkeeper. Thereby administrative burden can be reduced and the organization can focus on its core activities.

1 comment:

  1. Breaking in the field of accounting is a hard one. Without accountants (in a corporations,in midfield-players or even just in a small business) Payroll service would definitely put the marketing field and the whole economy into stoppage. Every establishment needs an accountant for we all strive for money – and we need someone to arrange and balance it. They are the greatest subservient of numbers, the master of detecting deficits, and the royalties of putting them in picket lines of outsourcing. Payroll is their greatest masterpiece that we employees really appreciate. We are kneeling spectators of their artistry – because admit or not, we need them – in a world of barter and exchange. And they sent it virtually – make it faster and the fastest through online – payroll services excel as the greatest accountant's creation.

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