Unit 9 Final Project. Different methods of bookkeeping. Essay
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There are several different methods of bookkeeping. There are single entry, double entry, and online bookkeeping. Single entry bookkeeping is simple and not to complicated because everything is entered into a single column. Its almost like your checkbook register. This type of system is best for small businesses, and you can add more columns if needed. Disadvantages of this system is that financial information cant be included into the spreadsheet. Mistakes and errors can be only identified threw bank statement reconciliation.
Double entry bookkeeping serves for large businesses that have lots of assets, several transactions and external suppliers of capital. Two entries are made for each transaction. Debit account and credit account. It will have the date, account, debit and credit.
For each debit entry and equal and opposite and credit entry is duly entered. The sum of debits should equal the sum of all credits. Mistakes can be easily noticed. There are no disadvantages to this system. Online bookkeeping gives the customer an option to store their business documents, source documents and data in a web based application. This is done so that the offshore providers bookkeepers can remotely access these documents and update the accounts as needed. The advantages of this system is you can access you accounts anywhere. They have high standards of security. With 50% of cost savings compared to your present bookkeeper. Saves time and effort. All of these systems are good but I think the best one would probably be the online bookkeeping. You can access it no matter where you go and you can access it 24/7 not just doing business hours. It will save you time, money and paper. You will be able to be in control of your accounts. Who wouldn’t like that?