What is Bookkeeping?
Bookkeeping is a growing profession - it is demanding, exciting, challenging and above all, rewarding. It is about understanding how a business works and then providing accurate figures that enable the business to know exactly how well it is doing. For men and women of all ages and from all backgrounds it provides outstanding career opportunities.
The basic system of double entry bookkeeping was invented more than five hundred years ago by a Cistercian monk called Luca Pacioli. His system still endures today and is used throughout the world, making bookkeeping a truly international profession. The ICB website will give an understanding of how to train to become a bookkeeper and how to become a member of the Institute. It will also help those who already have a qualification or have been working as a bookkeeper for many years but now want the support of a professional association to enhance career prospects.
Bookkeeping today is far more than entering data and reconciling the bank. Bookkeeping is thinking about the needs of the business, thinking about the processes to get a result.
Firstly, what is expected for standard bookkeeping?
- Processing purchases, sales, receipts, payments
- Processing payroll and maintaining entitlements and employee records
- Bank reconciliation
- Providing reporting for preparation of a BAS
- Producing reports for both management and accountant
- Record keeping
Good bookkeeping now includes above and beyond this standard process to ‘think’ more about each stage and ask the questions ‘can we do this better’ and ‘is bookkeeping part of the natural business system?’ Have I captured all the relevant information required to produce an accurate result?
Also note that a required standard should be that any other person, being a bookkeeper or accountant should be able to step in and work on the file for the business without needing to reinvent or research too significantly.
Understand the Bookkeeping Cycle here
How to Compare and Evaluate Bookkeeping Services
When comparing and evaluating bookkeeping services, we believe that it’s important to consider more than just the hourly rate or fixed fee that you’re paying. I believe that there are at least two considerations. One is the total cost of the service(s) that you’re receiving and the other is the quality of the service that you’re receiving. I’m going to look at each of these aspects. Many people make decisions about their bookkeeping quite blindly, not really knowing what they’re getting and whether it’s good value. Near the end of this article we’ve included a free download of twelve questions that you can ask your prospective bookkeeper and why these questions are important, in case you really want to investigate your options thoroughly.
For more information, click here.