Computerized Bookkeeping Systems

Steps to be followed for good Bookkeeping Systems :Many methods may be used. At a minimum, certain procedures should be done on a monthly or other periodic basis to make sure that your accounting records are accurate. Some of these steps are as follows:

- All checks written and deposits made should be entered into a check register.
- A monthly bank reconciliation should be done to make sure that all transactions have been recorded (including bank originated charges) and that the ending cash balances to the adjusted bank balance.
- All expenses should be classified into business expense categories to record the various expenditures.
- All deposits made to the account should be identified and classified (e.g., boarding income, interest income and owner contributions).
- A financial statement should be prepared on a periodic basis to understand the results of your operation.

it is extremely important to identify all the sources of deposits to make sure that actual income from operations is not confused with contributions of working capital from the owner.

Advantage of Computerised bookkeeping :Computerized accounting systems allow you entry of transactions into an automated system to provide a variety of information. Simple accounting packages can be very powerful tools to assist in understanding the results of business operations. After the entry of the basic transactions, the data is available in a number of reports (e.g., cash disbursements register, income statement, balance sheet.) These systems help “non-accountants” automatically produce standard financial statements without much technical accounting background. Good habits in computer processing procedures must be used to make sure that all the transactions are recorded. Otherwise, the financial information presented may not be accurate.

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