Davao Bookkeeper : Why It is Important To Every Business

Posted by Admin on Apr 11, 2013 in News | 0 comments

Bookkeeping is often an underestimated job. Unfamiliar to most of us, bookkeeping is essential in keeping an organization functional. If it were not for bookkeeping, companies would not have any idea how much money they have, how much they owe and what money hasn’t been on hand yet. Through bookkeeping, critical information is obtained and good financial decisions are made.

Unfortunately, many businesses in Davao City do not have a certified bookkeeper who can handle all financial matters. It’s the manager or the director who usually adds bookkeeping to his duties, only to end up being frustrated because of little or no bookkeeping training. When a company’s economic health is not safeguarded, that is when poor financial decisions are made and in worst cases, fraud happens.

In this article, we will discuss about:

• What Bookkeeping Is
• The Roles of A Certified Bookkeeper
• Major Steps in Bookkeeping

 

What Bookkeeping Is

So what exactly is bookkeeping? According to Wikipedia, bookkeeping is the process of recording all financial transactions in a business. To expound, bookkeeping documents money that flows in and out throughout a business and summarizes the information so that a businesses’ financial status is known.

 

The Roles of a Certified Bookkeeper

As mentioned above, bookkeepers are one of the key employees due to the essential roles that they play in an organization. So what are their roles?

1. They lead the organization in making well-informed decisions. Bookkeepers prepare reports showing the financial condition of a company. These reports permit companies to decide how much money to set aside in order to provide a certain service, future project funding and assess the overall financial health of the business. Without accurate financial records, it would be impossible to make informed decisions.
2. They help in keeping the organization run efficiently. Good financial records that are kept by certified bookkeepers save the company from chaos as preparation of such information won’t have to be done urgently. Saved time and energy all add up to a company’s health.
3. They demonstrate financial liability. As a company grows so as the need to report to outside funders, the government and other constituents. A company with a healthy financial status is assured that internal controls are in place.

 

Major Steps in Bookkeeping

Bookkeeping activities fall into three major steps. Here’s an overview of each functions:

1. Documenting – The first step in bookkeeping is to accumulate facts of financial transactions. When any financial transaction takes place, receipts should show the amount of money, the date and the people involved in the transaction. These are raw data from where financial records begin.
2. Recording – The second step in bookkeeping is to keep an official track of company expenses so when it comes to filing accounts, there is an accurate record of all the spending.
3. Summarizing – The last step in bookkeeping is to summarize all financial transactions in an accurate and understandable manner. The summary should include all day-to-day income or expenses of the company.

A bookkeeper’s job is crucial and certain skills are a pre-requisite. Bookkeepers must be detailed, must take pleasure in working with numbers and must be truthful in entering those numbers in the books. If you want a vigilant staff who can keep all the books for you, just get in touch with Davao Accountant.

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