Types Of Bookkeeping Services For any business owner out there, it is integral to have knowledge on different bookkeeping systems used to decide which system is more applicable for your business transactions. Well the truth is, there are 2 kinds of bookkeeping systems that are being used nowadays and these include Double Entry Bookkeeping systems and Single Entry Bookkeeping systems. When it comes to single entry bookkeeping system, this is perfect for businesses under small scale category. This kind of system is used for maintaining record of business transactions that’s related to cash receipt, cash disbursements, sales and purchases. This system is actually more of informal system that is applicable to small business transactions. Here, what the bookkeeper does is use the system to maintain the day to day summary of cash payments and receipts and at the same time, the monthly summary of cash payments and receipts. When it comes to single entry bookkeeping procedure, only one account is affected by every transaction made. In case of double entry transaction however, every transaction is going to have entry for both accounts.
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Say for example that there is a sale for certain item, then the cash deposit or receipt account is updated only with received amount. Corresponding entry in sales account won’t be made in single entry bookkeeping system. Hence, it doesn’t provide a complete financial standing of different systems in the business. If you are rooting for a detailed transaction of different systems that are involved in the business transaction, then that is when you should opt for double entry system.
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Now in double entry bookkeeping system, it is a type of bookkeeping system that is typically used by an accountant or bookkeeper in any business. The system is used in an effort to complete accounting details of the transactions made by the business and to introduce concept of credit and debit at the same time. Mainly because of the reason that there are a number of accounting systems used in bigger businesses, debit entry is one of those accounting systems that’ll be accompanied by a credit entry but in different accounting system or perhaps, in more than one accounting system. And likewise, the bookkeepers should have different debit entries for one credit entry. The financial performance of the company may be ascertained clearly based on acquired accounting details from double entry bookkeeping systems. Manual bookkeeping and the other is computerized bookkeeping are basically the two methods of how bookkeeping is done. In manual bookkeeping, the bookkeeper makes use of journal or ledger book to be able to record different accounting entries that are related to business transactions. On the other hand, computerized bookkeeping does the same thing in manual processes only here, it’s computerized.