In a business organization, bookkeeping is the base of the organization’s accounting system. The responsibility of classifying, recording, and analyzing the business firm’s accounting transactions is on the bookkeeper. The bookkeeper should be aware of all the techniques required to record those accounting transactions.
As an owner of a small business, you have to either set up the accounting system yourself or hire someone who can set it for you. If it is a single person business and you are employed yourself, you will have to do the work yourself. But if you are willing to hire staff and except much growth, you might want to employ a controller to take care of your financial accounting and management. If your firm is going to expand, but you expect slow growth, then you may employ a bookkeeper or an accountant to handle your accounting system.
Controller vs. Accountant
A controller is a firm’s head accounting officer. He or she is responsible for maintaining or setting up the firm’s accounting structure. A controller is completely responsible for the company’s accounting data and how to respond to it responsibly and appropriately. The controller is often hired when a firm’s business expands.
Where a bookkeeper classifies and records the company’s financial transactions, an accountant takes further steps and reviews, analyzes, interprets, and reports financial data for the firm.
Single Entry or Double Entry Bookkeeping
Single-Entry bookkeeping is more like keeping a check register. As you make deposits or pay bills, you tend to record these transactions into the firm’s account. This only works when you are running a firm with a low amount of transactions.
If your firm is of any complexity and size, you will have to set a double-entry bookkeeping structure. A debit is recorded in one account and a credit to another account. This is the solution to double-entry bookkeeping. When all the expenses and income are managed properly, the owner finds it very easy to review the financial statement of the company.
Taking care of bookkeeping yourself can be very hectic as you have much other information to take care of. Owners prefer hiring professional bookkeepers who will handle all the financial information as it saves times and helps you run and concentrate on your business more efficiently. You can now call up Xero bookkeeping services sunshine coast for the best accounting and bookkeeping services in your area.