Bookkeeping services are very important in maintaining business records and keeping track of daily transactions to ensure that all business obligations are met, bills are paid, and to avoid future conflicts. Whether it’s a small organization or a large corporation, bookkeeping is really an asset in keeping accurate financial records.
Bookkeeping is one task that businesses shouldn’t overlook or neglect. Almost always, the sole reason why a lot of businesses do not survive for more than a year is because of poor financial management. Having no CPA or bookkeeper to properly keep a record of your business transactions can cripple the growth of your company. And whether you run a small organization or you’re an owner of a large corporation, bookkeeping is important.
Here is a list of what a bookkeeping can do for you and your business.
It can provide you a greater understanding of which area of the business profits and which are not, so you can trim down operational costs.
Many business owners often give bookkeeping the lowest priority because they don’t recognize its importance. What happened next? They probably lost more money than it would if they had hired somebody to do the job.
In today’s tough economic climate, if you really intend to make your Davao based business survive and grow, proper keeping of the books is very essential. If you do not have bookkeeping expertise, you can always hire a CPA in Davao City to handle all your financial records and statements.
Though we are now in a computer-generated era, it doesn’t always make sense to use a computerized bookkeeping system. If you are running a small business in Davao City, a CPA can manually do bookkeeping.
Manual bookkeeping is the traditional way of bookkeeping wherein business transactions are recorded manually. By manual means, using pen and ink in journal books and ledgers which typically include sales and purchase day books, cash book, and petty cash sheets . As mentioned previously, this method is still used in many small businesses with less complicated or minimal transactions.
Computerized Bookkeeping on the other hand is the new and innovative way of recording business transactions. With it, bookkeeping has been made a lot easier and faster, eliminating the tedious task of manual bookkeeping.
Simply put, manual bookkeeping is ideal for those who aren’t techy and confident using a computer. It is also ideal for small business owners who have simple business affairs. While computerized are for the techy ones and those that run large businesses or corporations.
Now, let’s look into the details of the advantages and disadvantages of these two bookkeeping methods and see what is best for your business in the city.
This is the computer age. Why would you not have a computerized system? Although, it may not the norm today, for a non – techy, manual bookkeeping is advantageous to them.
Below is the list of advantages and disadvantages of manual bookkeeping.
Today, more and more businesses are turning to computerized bookkeeping systems. It’s no wonder why. It has several distinct advantages over the manual bookkeeping method. However, it has also its own disadvantages which should not be overlooked.
Bookkeeping is really critical in every business. Whether you choose to stay with the traditional way of keeping records or opt to use the computerized system, bookkeeping should not be neglected. Should you wish you to employ a Davao CPA in your company or outsource your bookkeeping activities to the professionals, you can just check out Davao accounting