What is Bookkeeping?
Bookkeeping involves the systematic recording and organizing of financial transactions and information about a business on a day-to-day basis. Bookkeeping has to ensure maintaining an accurate, comprehensive, and up-to-date record of individual financial transactions to facilitate important operating, financing, and investing decisions. Bookkeeping is a distinct part of the broader scope of accounting, which is done by individuals called bookkeepers who organize all financial data for companies.
Why is Bookkeeping Essential?
Accurate, reliable, and well-organized bookkeeping is vital for businesses of all sizes. It not only provides companies with a reliable measure of their performance but also crucial to external users like investors or the government financial auditors. Seemingly simple, bookkeeping soon becomes more problematic and beyond the scope of a simple bookkeeper with the introduction of tax, assets, loans, and investments in large businesses. Here comes the role of an accountant who put together the bookkeeping results in standardized annual financial statements. Qualified Accountants are well acquainted and conscious of the country’s tax laws and accounting standards. They can analyze the account statements, and educate the business owner on ways to improve business trading, carry out audits to guarantee the precision of the financial activities of a business. But for small businesses, the needful is done by hiring a bookkeeper who is solely responsible for the record, organization, up-to-date concise financial information.
Modern Bookkeeping Options
With the advancement in technology, bookkeeping has evolved from multiple ledgers to multiple Excel files to 100% online cloud-based accounting systems with unlimited storage. It involves no downloads and updates, no risk of losing data, and no issues with storage space online or off. With the emergence of mobile apps, managing your business accounts is possible even on the go.
Small companies generally hire a bookkeeper instead of a full-time accountant to save money. But accounting systems like XERO have effectively said goodbye to tedious books and ledgers and made bookkeeping tasks simple, extremely accurate, and affordable.
Xero: Online Accounting Software for Small Businesses
- Xero is a web-based accounting software platform developed to cater to the needs of small and growing businesses back in 2006.
- It enables to connect small businesses with accountants and financial advisors and provide business owners with prompt visibility of their financial position.
- Xero is cloud-based software, using a single unified ledger, which is efficient at helping users to remain organized and makes traditional bookkeeping functions like tracking payments and financial information a whole lot easier.
- Small businesses can access their account details, cash flows, and transactions from any location while using this web-based accounting solution.
- Bank transactions are automatically imported and coded.
Among all the cloud-based accounting software options available for business, Xero stands out with some distinct features:
- A built-in currency converter,
- Automated bank feeds,
- Extremely user friendly and easy to use even without in-depth accounting knowledge,
- Global accessibility from any device with an internet connection,
- Easy integration and compatibility with other systems, and
- Best pricing offers a three-tier pricing system.
Spot On Bookkeeping: A Virtual Bookkeeping Service
Spot On Bookkeeping is a virtual bookkeeping business in Darwin NT Australia. They are open to working remotely for bookkeeping in Australia for any small company. They specialize in the Xero accounting package and even offer to convert existing books to Xero for their clients. They outsource to actual experts in Accounting and new business packages for virtual bookkeeping anywhere in Australia.
Spot On Bookkeeping offers the following services:
- Data Entry: Spot On Bookkeeping offers data entry services from .CSV files to transferring information from paper files to digital files, extracting words from recordings, and creating video files using Robot text readers.
- Reconciliation of Books: Spot On Bookkeeping strictly works with Xero and offers reconciliation services for small to medium businesses involving chasing up old debts.
- Conversion to Xero: Spot on Bookkeeping uses various techniques, tools, and experts to bring businesses over to the Xero Accounting Package, which includes the tough cash flow manager to Xero Conversion. Each conversion requires a specific technique.
Xero Replacing Bookkeepers
With the growing use of efficient online accounting programs like Xero, the role of bookkeepers has taken a back seat, and the day-to-day intensive record-keeping is going to eventually be all done by machine. Today, more than half of small businesses no longer hire bookkeepers but rely on Xero for their bookkeeping needs once the program has been set-up. Once a business starts growing and needing help with payroll, deducting tax and calculating debts, etc., they might need a bookkeeper but small to medium businesses now easily manage to work without a bookkeeper by benefiting from Xero , contact Spot On Today.