Bookkeepers are the backbone of any business enterprise. They serve the purpose of recording, summarising, analysing and interpreting the financial transactions for multiple uses. From checking the register till recording the payments and deposits, it seeks the leverage in providing high-end financial council to all the corporations at par.
Bookkeepers in Melbourne are highly skilled and deft in designing the bookkeeping systems that serves all the purpose of taxation, investments and portfolio management. Undoubtedly, they deal with the complex systems of preparing ledgers and journals for multifarious business requirements.
Purposes of Bookkeepers in Melbourne:
Bookkeeping is prima facia in the field of accounting. It provides an insight of the business growth and its related opportunities folded with risk management. Some of the important purposes of Bookkeeping firms in Melbourne:
- Supports in Decision Making Process
Balance Sheet is the mirror of the growth of the business. It plays out an imperative role in determining the gap between Total Assets and Total Liabilities. Bookkeepers assist the firm about their financial status as well as act like a supportive role in loan proposals and loan approvals.
- Helps in the Auditing Process
Bookkeeping firm keeps a regular track over the financial transactions with utmost transparency and reliability. They analyse the liquidity position of the firm in context to current assets and current liabilities. Thus, Bookkeepers aids in the process of effective auditing.
- Show Permanent Record of Business
One of the major objective of bookkeepers is to keep permanent record of the business and its associated transactions with thorough transparency. They are deemed to follow all the accounting principles and concepts that are relevant as per the respective accounting standards. These help in eliminating types of errors and omission for error free Income statement and Balance Sheet.
- Enables to know the true financial position of the business
For every entrepreneur, Financial Statements serve as the basis in proposing their investments and preparing potential budgets. Thus, Bookkeepers helps in analysing the ratios and interpreting the performance of the firm in a way to compete with the competitors at helm.
Methods of Bookkeeping
Different business practices different kind of booking system. For an instance, some hire bookkeepers in Melbourne to work upon single entry system while other demand for double entry system.
- Single Entry System
Single Entry system basically deals with recording and evaluating the daily cash receipts and cash payments for regular interpretation of the cash flows.
It is the oldest method of recording the transactions. It is primarily used by sole proprietors and partnership firm. Here, ledgers, Journals and Trial Balance are not prepared on scientific grounds.
- Double Entry bookkeeping system
Double Entry bookkeeping system keeps record of the dual entry of the transactions. It provides check for the balance generating via debit and credit based entry. It is based on scientific and financial records.
It is also adhered with various principles of debit and credit. Transactions are deemed to be recorded when debt is incurred and revenue is earned.