Easy to Understand Bookkeeping

Today with new technology most everything is computerized, including

ACCOUNTING and BOOKKEEPING. However, it is very important for us as BOOKKEEPERS to understand the whole ACCOUNTING SYSTEM and to be able to record and create accurate reports. BOOKKEEPING is recording and posting daily transactions, keeping all the records organized of a business and also preparing some financial reports at the end of a period. ACCOUNTING is planning, keeping, analyzing and interpreting FINANCIAL RECORDS. It is often called "THE LANGUAGE OF BUSINESS". It is a big part of the operation division in a company.

Every business is concerned with its FINANCIAL RECORDKEEPING. BOOKKEEPING is very detailed and requires a good organized system to perform an accurate job. Organization is a discipline and any body can discipline themselves to become an organized person.

A very small company may only have a FULL CHARGE BOOKKEEPER who handles just about every financial task, and use a CPA Firm for consultation and tax preparation.

In the accounting field, we find different "JOB CATEGORIES":

1- ACCOUNTANTS (Private and Public) Person who plans, summarizes, analyzes and interprets info.

2- FULL CHARGE BOOKKEEPER Person who does general accounting work plus some summarizing and analyzing.

3- JUNIOR BOOKKEEPER/ASSISTANT TO BOOKKEEPER Person who works under full charge bookkeeper, recording information.

4- ACCOUNTING CLERK Person who records, sorts and files accounting info.

5- OFFICE CLERK Person who works doing general office tasks, including some accounting Tasks.