Benefits of bookkeeping in small business

When a person starts a business he has lots of tension about related to account and if there is any miscalculation in account than business scale is going down. So preventing from miscalculation we should use bookkeeping technique. It is helpful in growing business and relaxation of mind. So we can say bookkeeping is a process of higher profit and lesser tension. Now question arises here like what is bookkeeping? Who works under bookkeeping? What types of bookkeeping are uses?
Here we first know what is bookkeeping? So bookkeeping is related to financial transaction.it is record of sale, purchase, income, payments etc. it is done for an organization. The work performed for bookkeeping is known as bookkeeper. So how a bookkeeper works is differ from work of an accountant. Actually, an accountant is do same thing like a bookkeeper do but accountant works on data provided by bookkeeper. Accountant after that receiving data create a report. So an accountant is do accountant processing job. There are generally two types of bookkeeping. First one is single entry bookkeeping and second one is double entry bookkeeping. In single entry scheme company generally used cash book. This is similar to investigate the account register to fill up income and expenditure accounts with income and expenditure. AS name says in double entry scheme every entry should be entered in account system twice. So it is a set of rules in which account information is recorded at least in two nominal ledgers.
Now question arises here how bookkeeping is beneficial for small business? In small scale business or entrepreneurs do not write income, sell, expenditures. They kept in mind this entire thing. These things mess-up after some time. At that time businessman do not know how much he earns and how much he expend? At this time solution of above question is bookkeeping. One another benefit of bookkeeping is it gives a strategy to develop business. Using bookkeeping in small business we considered on this question:-
1. What you think business is?
2. What types of business do you do?
3. Types of problem you encounter with your own business?
4. How much you earn you get and how much you invest?
Above are some types of question is arises while doing a business. So we can say that bookkeeping is profitable because it help us to take better decision and earn more money. Now here is another question arises why bookkeeping?
The answer is many people don’t write what they sale and what they earn. This is because they don’t know how to do that and how it is profitable for business? Therefore people don’t know how much they earn and which customer take goods on credit and how much stock on credit.
So we can say bookkeeping solves all problem regarding with small business.

Source by My Pen

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