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The Purpose Of Bookkeeping

Bookkeeping is very important for business owners to know the financial condition of their business. They are not only used as a testing tool but are also used as a basis for determining and assessing the financial position of a business. Besides, bookkeeping also functions for analysis by related parties such as business owners, creditors in making decisions to determine plans that will benefit and advance the business. So with this bookkeeping is very important to note. In general, it is an accounting process that can be used as a means of communication between financial data or the activities of a company and parties with an interest in the company’s data or activities. To do it without a hassle you could use the service of Irena’s Bookkeeping so you could focus on other aspects of your business.

The process begins with the clarifying transactions process. At this stage, a division of the transactions of an organization or company is carried out into certain predetermined types. An example is the division of transactions that go into sales, purchases, cash disbursements, cash receipts and others. The process of recording and summarizing comes next. After clarifying the data, the next step is to take notes. Enter transactions into the correct journal according to the sequence of transactions. Sources that can be used as evidence include receipts, bills, notes, receipts and so on. After the transaction is entered in the journal, then enter the journal in the general ledger periodically.

Interpretation and reporting processes. After the two processes are carried out, the final process is to conclude previous activities or financial reporting. From financial statement information, a person can find out what happened to the company, whether it is by the company’s goals and this information can be a reference or guideline for management for decision making. So, make sure you put a lot of attention for the bookkeeping or just hire a professional bookkeeper to make the process quicker and without any problem.