We hear this question just about every day. Quite simply, for a record keeping system to be most useful, it should be simple to use, easy to understand, reliable, accurate, consistent and can provide you with the information on a timely basis.
There are three types of bookkeeping systems; (1) paper, (2) computerized bookkeeping, and (3) cloud-based bookkeeping systems. The system that is right for your business will be dependant on your business needs presently and the plan and goals of your business in the future.
EXAMPLES OF MANUAL BOOKKEEPING SYSTEMS
- Double entry bookkeeping: Each transaction is recorded twice; one account is credited with the given dollar amount and a second account is debited by an equal amount.
- Usually maintained in a ledger book or an Excel spreadsheet.
WHAT ARE THE ADVANTAGES OF COMPUTERIZED BOOKKEEPING?
There is a wide range of computerized accounting packages available in the marketplace. These packages offer speed and versatility and give the business owner the ability to produce daily updated financial statements. Now, most of these packages are very scalable, so as your business grows and changes, you can add resources to your accounting package to meet the needs of growing business.
As soon as you start using a computerized bookkeeping package, data retention and backing up your data becomes a critical requirement. Some programs offer features such as automatic backup to the internet along with secondary backup to external drives.
We have experience in all 3 types of bookkeeping systems, if you have more questions or want to get started —-> contact us today!