Bookkeeping OutsourceOutsourcingitindia, has pioneered outsourcing services in India providing proven technology-driven book-keeping services to global customers. The quality assurance processes gives us the best opportunity to provide our clients with quality bookkeeping services with quick turnarounds. If you are an organization who is looking for bookkeeping services, then we are the ultimate solution you need. We specialize in various bookkeeping methods. We work on different types of accounting, such as, double entry bookkeeping, single entry bookkeeping and online bookkeeping services. The following are a list of the different methods of accounting.
Bookkeeping system for Single Entry Method
The success of any business begins with money management; we make your bookkeeping quick, easy and affordable. Double entry accounting is most preferred than single entry bookkeeping by most companies because of its out-numbered advantages. The single entry bookkeeping system is maintained in a very similar way to that of checkbook register. The single entry bookkeeping method restricts itself to one line for every transaction in the journal and therefore restricting itself to one column for all transactions recorded. But this system is well suited for small businesses including sole proprietors and partnerships as it provides complete tracking of sales, customers, receivables and inventory. Only the differences between the expenses and the revenues to be totaled are allowed to be displayed leaving out the individual values. Without knowing the individual values, the budget cannot be formulated and this can be done by arranging the transactions into a table, displaying the total expenses and revenues.
Pros of single entry bookkeeping system
- New columns can be added for various types of revenue and expenses.
- This system works well in a small business setting.
Cons of single entry bookkeeping system
- Only the basic information is available. The details cannot be added.
- Identification of mistakes are possible only by bank statement reconciliation.
- The financial position cannot be calculated.
- No link is provided between the balance sheet and income.
- Cannot track liability and asset accounts, such as inventory, accounts receivable and accounts payable.
Bookkeeping system for Double Entry Method
Every business transaction involves an exchange between two accounts, to understand the financial status of business, accurate bookkeeping is required — it offers a degree of transparency to investors. We provide checks and balances to ensure that your books are always in balance. A double entry accounting system is maintained for organizations having large assets, external suppliers of capital and thousands of transactions to deal within a period.
The two most vital characteristics of this method are:
- Each transaction has two accounts and is maintained in two columns.
- Two entries are made for each transaction where one is the debit entry and the other as credit.
Therefore, this helps to maintain a good balance of the accounts that come in and go out. There are four columns which include date, accounts, debit and credit. The accountant has to ensure that the debit column entry tallies with the credit columns in order to maintain consistency and accuracy.
Pros of double entry bookkeeping system
- Spotting of errors come handy.
- Statements can be prepared immediately and effectively without wastage of time from the accounts.
- The company can maintain the assets and liabilities along with the bookkeeping accounts.
Online Bookkeeping
An online bookkeeping application maintains bookkeeping system online. This helps organizations maintain and update the system through a web-based application in turn making the whole editing process simple and easily accessible for the clients. Storage is extremely reliable as the clients use an online server to store the data. Some of the commonly used bookkeeping software are SQL Ledger and Quickbooks.
Pros of online bookkeeping system
- Instant access to the accounts irrespective of the client’s location.
- A secure method saving time and space.
- Updates and changes made instantly and as often as required.
- A cost effective measure saving almost upto 50% or more of the expenditure incurred otherwise.
- Does not require infrastructure, software and people to constantly work on them.
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