Studies & Degrees in Bookkeeping
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Bookkeeping is basically the recording of financial transactions, such as income, sales, purchases, and payments, of an individual or an organization to monitor the business performance. As it is associated with Accounting, one must not confuse it from the latter. Accounting, on the other hand, is basically making a report out of the recorded financial transactions made by the bookkeeper as well as files and forms from the government agencies. At that, a bookkeeper and an accountant work together to accomplish financial reports for an individual or an organization. However, accountants can also do the bookkeeping themselves as they have the knowledge and skills to do so. Bookkeeping can be done manually or using online bookkeeping programs through the use of the computer. For you to be able to understand bookkeeping, you must familiarize yourself with bookkeeping jargon like their shorthand DR and CR for Debit and Credit, respectively.
In the process of bookkeeping, there are 2 common bookkeeping systems used: the Single-entry Bookkeeping system and the Double-entry Bookkeeping system. In the Single-entry Bookkeeping system, only the income and expenses accounts are recorded and are placed mainly in an expense and revenue journal. It is somehow alike to a financial statement where transactions are only recorded once. This type of bookkeeping system is most often used in small business organizations. On the other hand, the Double-entry Bookkeeping system involves recording each financial transaction twice, with at least two financial records, using debits and credits to pin-point any errors in the recording of transactions. This is usually used by bigger business organizations that have lots of financial transactions ongoing every day.
In light of the fact that today’s technology is at its best and is continuing to innovate, bookkeeping can now be done with the help of computers. Some bookkeepers, especially those employed in large organizations make use of computerized bookkeeping or online bookkeeping for them to experience less difficulty in recording all the company’s financial transactions. Big companies like banks make use of the online bookkeeping system for easier recording of financial transactions from all of its branches throughout the city, or even the country.
Bookkeeping involves recording day-to-day financial transactions of an individual or an organization. Bookkeepers record these transactions in what they call the “daybook”, which consists of the individual or organization’s sales, purchases, payments, and receipts. They also ensure that all financial transactions for the day are all recorded correctly in the respective daybook so as to avoid confusion. Aside from the daybook, bookkeepers also maintain the customer ledger, supplier ledger, and the general ledger. At the end of the day, the bookkeepers bring the books to the Trial Balance stage and give them to the accountant. The accountant now makes the income statement and balance sheet with the help of the trial balance and ledgers which were prepared by the bookkeeper.
For students who majored in Bookkeeping, a career as a bookkeeper is the main job one can get. Bookkeepers may be employed as Accounting Clerks, Accounting Technicians, or Human Resources Assistants who are in-charge of the company’s payroll.