Importance of Bookkeeping in the Current Scenario

Discovery of latest technology has made Accounting and Bookkeeping easier than ever before. With the latest software now the tasks can be managed simply and can be accessed from wherever and whenever you desire. Certain tasks which used to exist previously have been replaced with a newer version of software like maintaining ledger account and updating that timely mentioning all the details of accounts payable, accounts receivables, sales, stock, amount of sold goods, etc. Financial statements have been replaced by the modern method of Bookkeeping and Accounting Services. ASC Group provides Bookkeeping and Accounting services through different soft wares like Sage, Xero, Quick Books, and Tally.

Why Accounting and Bookkeeping Software is required?

• Accounting and Bookkeeping software keep a track of transaction on total debit and credit amounts.
• Accounting and Bookkeeping software maintain an equal balance between debit and credit amounts.
• There are rare chances of any mistake/error in calculation, re-writing the values or manually entering the values which used to create confusion.
• While accessing the software debit amount will always turn out to be equivalent to the credit amount.
• The trial balance is always balanced.
• Accounting and Bookkeeping software is quick and precise in processing the data that is stored in it.
• It would be difficult to track the omitted/deleted transactions in the software.
• Random amount could be entered into Accounting and Bookkeeping software if the business isn’t having internal Controls.

Accounting and Bookkeeping

Once the sales invoices have been issues, payroll management exists and other transactions have been made for a given accounting term, some entries still need to be added. Certain adjusting entries are:

1. Profits and monies that were made, but not yet added into the software.
2. An advance payment that is no more prepaid.
3. Expenditures and obligations that were experienced, but not yet added into the software
4. Recording depreciation expenditure, bad debts expenditure, etc.
5. The entries made later must need an individual to control the values and accounts.
6. Without above said entries the Accounting and Bookkeeping software won’t be appropriate and would offer to deceive financial statements.

Once the financial statements for a given accounting year are released the Accounting and booking software shall transfer balances to the business’s capital account and to shareholders saving/ salary account. It would reflect a zero balance opening in the next financial year.

How to record the transaction in Accounting and Bookkeeping software?
Accounting and booking software requires all minor and major transactions made by the company in a particular year, it must include all the financial transactions. The dealings must be proved, existing, approved, identified and stocked in a way that they can be recovered and be available in company records and financial statements.

Some of the instances of the company’s accounting transactions:

• Rent for the commercial office.
• Salaries and wages made by employees.
• Buying tools for the workplace.
• Borrowing cash from a bank.
• The buying of supplies with cash.
• The buying of Product on credit.
• The sale of the product on credit.

Accounting and Bookkeeping software shall comprise of financial statement with details of expenditures and earning to track the record and deliver the report in a precise manner. A person would be able to maintain and manage more clients if they use accounting and bookkeeping software that will deliver the results as expected. It will enhance the working capability of and organization and growth of business financially.