Anybody will agree that bookkeeping is a significant part of the accounting process.
Bookkeeping includes a recording of various business financial transactions, including sales, purchases, payments, and others.
Before computers and computer programs came to our life, the bookkeeping was associated with manual entering the financial transactions into special journals. Organizations used different journals such as sales journal, purchases journal, cash payments journal, cash receipts journal, and others. Later, all numbers that contained in the journals were рlaced into corresponding accounts of the general ledger. Manual adding financial transactions into corresponding journals, entering into the right accounts, calculating the account balances, and other operations could give some errors in the result. Finding and correcting errors require additional hours on the retracting the postings and entries.
Today, using computers and software in bookkeeping and accounting allows removing many paper journals and eliminating many bookkeeping tasks. Moreover, computers and bookkeeping software eliminate errors that could accrue while manually entering, rewriting, and calculating. Bookkeeping software, as well as accounting software, is accurate and fast in processing the information.
Bookkeeping is the most important and one of the most time-consuming aspects of the business. Certainly, bookkeeping software for small business differs from accounting software developed for large corporations. The main purpose of bookkeeping is keeping records of financial transactions such as invoices issued to clients, or payments a company has made to a vendor. So, in the bookkeeping process, bookkeepers collect, organize, and record the financial transactions on a daily basis in chronological order.
When an entrepreneur just started its business, he/she can manage the finances with the help of software up to a point. Once the business gets to a certain size, the new accounting tasks arise, including the recording received and sent invoices, paying vendors, reconciling bank statements, posting banking transactions, ensuring the timely and accurate payments to staff, and many others. All these tasks require somebody’s time. So, a small business owner needs bookkeeping's assistance to complete the end of year accounts. Even a professional bookkeeper cannot fulfill this laborious work and needs the bookkeeping software for small businesses. There are many solutions offered by different software providers.