There are various transactions that are carried out as businesses are run comprising of sales, purchases, and receipts among others. Small business bookkeeping services involved the keeping of financial records usually done by the accounting department. Usually, there exists several methods of maintaining the said records for instance, double and single accounting system of entry. The criteria of choosing the method to use depends on the type of business, size of transactions and the frequency of keeping records.

These services are performed by a bookkeeper who is also referred to as an accounting technician or else an accounts clerk. They play the role of maintaining daily commercial transactions of the enterprise. These could include purchasing of stock, sale of items, creditors, debtors and also payments made such as water and electricity bills, just to mention a few. This accounting technician should ensure that the entries made are correct and made in the appropriate book.

The double entry entails the recording of all transactions including the assets and liabilities, an example would be a balance sheet. Whereas the single entry is used to enhance simplicity and thus excludes the liabilities and assets, for example the cash book. The double entry is used in long span of accounting processes while the single entry is ideal for daily cash transactions.

It is important for businesses to include such services this is so as to ensure better planning, presentation to potential investors, tax obligation fulfillment as required by law. The disadvantages of not including such services include delayed transactions, trouble in realization of discrepancies in financial transactions, greater tax fines and sluggish development of the enterprise. Small enterprises consist of records that are small and hence kept on a monthly or daily basis.

The process used when maintaining records, accounts for the commercial effects of transactions. The contrast between the use of electronic devices and the manual input lies only in potential of recording of monetary deals and the placing of data in most applicable account. The use of a manual system is chiefly characterized by lagging or delay which is absent in electronic input as it is instantaneous.

When a small sized organization has an effective accountant, he or she can make certain that the proper records are kept in the right order to minimize instances of errors. This helps in ensuring that the establishment grows in an efficient and effective manner. However, due to its size, an enterprise owner may solely decide that the keeping and maintaining of records be done by him. In such a case, it is advised that he possess the basic knowledge of accounting.

If one decides to do the accounting personally, it is a requirement that all records taken be it of purchases, invoices and all other expenses of business are kept safely. The expenses commonly comprise of transactions such as bank statements, electricity bills and many more. In an instance that the organization has employees, the accountant should ensure that all payroll records of every single employee are always kept correctly.

Ultimately, computation of a trial balance is needed. It is from this that statement of income and balance sheets are formulated. Important to note is that book keeping is crucial to a business.

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