Bookkeeping A Way Forward
History of Bookkeeping
History of bookkeeping can be traced back to ancient times of Mesopotamia. They deployed basic systems of recording, counting and auditing their financial transaction to keep a track of their business. After thousands of years bookkeeping and financial accounting still hold more or less same importance in modern day businesses as it had held previously over different millennia. From the earlier basic bookkeeping to the development of modern financial standards and frameworks, shear advancement in this field has enabled the accountants to record, and produce financial statements which are comparable, readable and understandable at a global level.
Bookkeeping – A competitive advantage
Bookkeeping tracks the financial business transactions and produce financial accounts periodically. This information is then used to provide financial business analysis to improve performance, profitability and cover the loop holes. In modern business environment where a competitive advantage can be a reason enough for your existence or elimination from the business industry, accurate bookkeeping can provide vision over the business transaction which is important to maintain or attain the competitive advantage over the business competitors. If certain shortfalls are overlooked over a longer period of time for any business, this blunder could result in loss deposited over a longer period of time.
Why to Outsource?
There has been a trend of hiring a self-employed bookkeeper services or financial service provider firm rather than employing a full time employee. Benefits of acquiring services from a self-employed financial provider exceed the shortfalls by far. Hiring a service providing financial business firm can offer updated expertise on the substance over form, and ensure the value is significantly add in the business by the use of modern techniques and recent advancements. Hiring an employee for professional bookkeeping can expose the organization to various legal and labor union risks which could in the end damage to organization. Employees are often protected by various legal laws and legislatively can corner the organization in certain situations such as contract termination, replacement etc.
Does Small Organizations Need Bookkeeping Services?
There has been an upwards trends towards the small business bookkeeping services. Every business is regardless of its size has realized the value accurate booking can have on their business. Hiring a professional accountant for a small organization can be burdensome because of their extensive salary packages etc. Many financial accounting firms have introduced micro bookkeeping services for the organization. These affordable and flexible services provided to the small business is meeting the high demand of this trend and making it easier for the small business owners to keep a track on their business in affordable fees.
These services provide a great value for the business because even at affordable rates the quality check and bookkeeping standards are ensure by the professional bookkeeping and financial accounting firms.
Continuing Improvement & Research
Like many other professional fields, revolution in this part is truly astonishing. Bookkeeping has come a long way and yet there is a long margin of improvement which will be filled over time. There have been many research and development organizations working on the automation system for the accounting software. Though the invention of Enterprise Resource Planning organization was partial automation of accounting, now experts are working on producing a module which will automatically detect and record business financial transaction which minimum human involving result in a revolutionary and accurate manner.
In short, though many businesses have not realized the importance of business bookkeeping yet most of them have and they are acquiring maximum benefit out of it.