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Bookkeeping – A brief description
The way in which a company’s financial transactions are recorded and maintained in an organized manner is referred to as bookkeeping. It is an accounting process that is made mandatory to all businesses. The transaction records are updated regularly to facilitate generation of financial reports whenever required. The financial statements reflect the performance of the businesses and they also come in handy during a tax audit. Therefore, proper documentation of records is crucial to reconcile your accounts. Bookkeeping forms the basis of accounting system.
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The methods of bookkeeping vary depending on the volume of everyday transactions of businesses. Hence, a small business will require a simple bookkeeping method whereas large corporations will require a complex bookkeeping method. It is required to collect documents such as bills, invoices, sales orders and cash register tapes to record transactions. Transactions can be recorded using journals, ledgers and trial balance. It enables to keep track of the incoming revenue and the outgoing expenses. The consolidated entries are then generated as financial statements.
- These provide valuable information on where the businesses stand and the areas that need improvement.
- Proper bookkeeping directs a company to success.
- Technological advancements have made even smaller companies go digital.
Challenges faced by students
Bookkeeping assignments pose some challenges to students and is not as easy as it seems. Nowadays, students are busy multitasking different activities. Some even do jobs to support their education. Hence, they struggle to complete assignments within the specified deadlines. They are expected to be well acquainted with various bookkeeping software. In reality, many are not well versed in those bookkeeping software.
- Some lack writing skills. Failure of early submission will reflect in their lower grades.
- Another challenge is to satisfy the requirements of their professors. All these causes stress and sleepless nights among the students.
The best recourse
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