Talking about business, what comes first into your mind? Money is what makes the business go round, so they say. Because of money, a business exists. Because of money, the business can run. It’s when you can make good business money can you say that your business is doing well. Business money is also associated with accounting.

In any kind of business establishment, accounting is a very essential process. The law requires business establishments to submit financial reports annually. Financial reports enable the business establishment to summarize what is the end product of their business, primarily the main task of accounting. Too many tedious tasks are involved in accounting and one of this is bookkeeping. An accountant needs thorough bookkeeping as a skill to be able to read and analyze financial records.

Therefore, what then is bookkeeping? Because it is a vital part of a business operation, bookkeeping is the skill that involves the process of recording and safekeeping of the daily financial transactions in a company which includes income, sales, purchases and payments. In the operation of the business company, bookkeeping is considered to be the most tedious task and at the same time very time-consuming. Normally, bookkeeping tasks should be performed by a bookkeeper.  

In other business companies, the bookkeeper is also called the financial record custodian. It is the bookkeeper who enters data in the accounting records, at the same time updating and maintaining such.  The bookkeeper also calculates expenses by scanning through the compiled official receipts, summarizing the accounts payable and receivables, and generalizes the profit and loss statements.     

Although tagged as the lowest in the department, the role of a bookkeeper cannot be outdone because it is considered to be the most important job in a business company. It is the bookkeeper who prepares the financial records and submits it to the accountant. Although both do similar work, there is a more detailed task entrusted to the bookkeeper. Bookkeepers are more involved in the daily financial operation of the business while accountants work on the financial data provided by the bookkeeper to produce year-end summary of accounts and tax returns.

In small businesses however, the general ledger is taken cared of by the bookkeeper. He is the one preparing the financial statements and reports including the generalizations made about the business which is highly needed by supervisors and managers. Preparation of bank deposits is also the responsibility of the bookkeeper. As soon as the cashiers of the business company submits the necessary data, it is the job then of the bookkeeper to verify and balance the receipts and finally send the cash or check to the bank. The bookkeeper also performs required purchases, sets-up invoices and keeps track overdue accounts aside from those routine tasks to be done.

In addition to the multiple tasks bookkeepers are required to fulfill, there are still additional tasks to be done like, producing VAT returns and construct management accounts aside from the maintenance of sales and purchase of ledger accounts. From the records efficiently submitted by the bookkeeper, the accountant in now ready to devise tax strategies, provide business advisory services and auditing of the clients’ accounts. As far as performing the job is concerned, the thin line between the bookkeeper and the accountant in terms of job description is that the latter usually have the skills to perform the job of the former. But because their task is very important to the company, both of them are needed to make the business run. But usually, companies prefer the services of the bookkeepers New York than an accountant because they are more affordable.

In conclusion, bookkeeping should complement accounting. If the bookkeeper is not as efficient and as effective as the job entails, the work of the accounting associate will also be affected. It is highly commended when a bookkeeper performs his job as effectively and as efficiently as an accountant. Therefore, most companies prefer outsourcing bookkeepers besides it’s just easy to find one. Hiring from bookkeepers New York, you can be assured of bookkeepers who have the experience and qualification necessary to run your business successfully.