Understanding Bookkeeping and Its Benefits for Business

 

Bookkeeping in a business enterprise is the basis of an accounting system. According to Law, bookkeeping is a record-keeping process conducted regularly to collect data and financial information covering assets, liabilities, capital, income, and costs, as well as the amount of the acquisition price and delivery of goods or services, which is closed with prepare financial statements in the form of balance sheet, and income statement for the period of the taxable year.

There are several common methods of bookkeeping: single entry-entry bookkeeping and double-entry bookkeeping. Both systems can be seen as real bookkeeping. A single-entry accounting system is the source of primary accounting records such as cash books. This is similar to a list of checking accounts and places revenue and expenses into various income and expense accounts. This system works only if you are moving in a small company with a low volume of transactions. While Paired System suitable for large companies and has a complexity. With this system, you can create two entries for each transaction. A debit is made to one account and a credit is made to another account. This is the key of a paired system. This form of bookkeeping is better than single-entry bookkeeping. Today there are many accountant and bookkeeping service providers, one of which is Inter-gration CPA, which of course will facilitate the company in the field of accounting and bookkeeping.

All businesses need a bookkeeping in running a business. The following are some of the important benefits of financial bookkeeping activities for business conditions.

Know the amount of Profit or Loss

This can be called as the most important thing in running a business. Because indeed in running a business that is sought profits. If there is a loss then it must be immediately sought solution solving not always suffered losses that could impact on the death or the end of business that has been run. By knowing every transaction that exists on each day and knows the flow of money and goods distribution within the company, then you can know the estimated profit to be gained or loss that will be suffered. From recording every existing transaction, there will be numbers that can show how the financial development of the business.

Knowing Every Transaction Performed by The Company

The primary function of bookkeeping is to know every transaction made by the company. No single transaction will be missed or unlisted. In this case, it takes precision to do the recording. Careful and neat logging is very influential on the sustainability of the business run. By knowing what transactions are there on that day it will be known how the distribution of money on that day, where the money went, and from whom the money came out. Not only the distribution of money but also know the distribution of goods. How much amount of goods has been incurred on that day and how much goods have been put into the company. All this can easily be known simply by looking at and checking your financial books.

Materials Business Assessment

The bookkeeping business is a recording of all the activities that exist within the company. From this recording will get an idea of ​​how the business has been run by the company. Does bring a good impact for a profit or just bring loss. If the profit has been obtained then will be sought and devised strategies to maintain the continuity of business in order to still be able to provide benefits. Whether to keep using old ways and strategies with multiple adjustments or using new ways and strategies.

Likewise, if it is obtained information that the company only suffered losses from the business that has been run. This booklet can be used as a reference to consider the steps that will be taken to avoid the loss and to gain profit. Reference to this bookkeeping is done to find fault in the company’s strategy that has been done and cause the results only provide losses and not a profit. Then will be sought and found new ways or adjustments in a long way so that later companies have more opportunities or open to earn profits and no longer repeat the occurrence of losses.