Loading...

Bookkeeping is just another word for accounting, right? Wrong. A lot of people think the two roles are the same, however, the term bookkeeping refers to recording financial transactions and activities on a daily basis.
It’s a subset of accounting which requires the following jobs to be done in order to build a financially stable business:

One of the main components of bookkeeping is managing a general ledger. This is the primary document where bookkeepers keep all their records, expenses and receipts. Recording on the ledger is known as posting. So, the more times there’s a sale or spend, the more often the ledger will be posted.
In the past, ledgers were created with basic tools like a pen and paper. However, as technology and industries have evolved, they’re now created with specialised software that can be automated and tailored to your business to meet specific requirements.
The complexity of bookkeeping software is completely down to whoever is managing it and their preferences, but it can also be formed on the size and demand of the business.
For example, a larger business that receives tens of thousands of orders per day will need a far more complex bookkeeping system than that of a small village bakery. The more transactions you need to record, the more complex your system will need to be to cope.