What Systems And Methods Are Used In Bookkeeping Services? As a business owner, being able to have knowledge of different kinds of bookkeeping systems will help you to decide what kind of system will be more appropriate 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. In a single entry bookkeeping system, this is ideal for businesses that are 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. Well the truth is, this system is more of an informal system perfect for 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. As for double entry transaction however, each transaction will receive an 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. In a single entry bookkeeping system, the corresponding entry in the sales account will not be created. Hence, it is not providing complete financial standing of different systems in the business. You should go for a double entry system only if you’re rooting to have a more detailed transaction of different systems involved in the business transaction.
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In regards to double entry bookkeeping system, this is a kind of bookkeeping system that is mostly used by accountants or bookkeepers in a business. This system is used to be able complete accounting details of transactions made by the business and also, introducing the concept of credit and debit. Because of the reason that there are several accounting systems that are implemented in a business, debit entry in one of the accounting systems will be accompanied by credit entry as well but in a 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 company’s financial performance may be ascertained based on the accounting details obtained from double entry bookkeeping systems. There are two methods on how bookkeeping is done one of which is manual bookkeeping and the other is computerized bookkeeping. In manual, it’s actually the oldest method of bookkeeping to which the bookkeeper use a journal or ledger book 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.

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