Bookkeeping � As the name suggests, it is nothing but the maintaining of the financial records of the company. It is considered as one of the most important things about running the business. This is because, bookkeeping provides a lot of data. This data can be used later on to deduce financial forecasts and business models. During audit also, this data that is obtained because of bookkeeping will come handy. As a company, the financial data needs to be provided to a lot of people � like the stakeholders, customers, investors and clients. This financial data comes from appropriate and up-to-date bookkeeping.
The book in which all this financial data is maintained is called the �day-book’ and the person who does this job is called the bookkeeper.
There are two types of bookkeeping. The types of bookkeeping depend on the size and type of the company that you are handling. If the size of the company is small and your accounting information is not complicated, then you can settle with Single-entry bookkeeping. This will enable to maintain the daily cash flows, petty cash handlings, day to day profits and losses and monthly cash statements. This is especially done through manual entry. However, since there is a lot of manual human entry, it could be prone to errors. However, if your company is very big and is handling huge amounts of financial data, the single-entry bookkeeping would become complicated and difficult to handle. In this case, you can go for double entry bookkeeping. This will help to maintain huge amount of financial transactions � not just on a daily or monthly basis, but for years to go. This is generally done with the help of accounting software that is available in the market. Since this is generally done with the machines, it is less prone to errors, even while maintaining complicated finances.
While hiring a bookkeeper to do this job for you, you need to keep in mind the following important items:
� Credibility: You need to make sure that the person you are hiring has got a thorough background check.
� Tech savvy: If your business demands double entry bookkeeping, it is important to make sure that the bookkeeper is tech savvy. This is because, there are multiple software available in the market, which make the process of bookkeeping easy and friendly. The bookkeeper should be able to navigate and easily make use of these software. This would make the process of bookkeeping easy for him/her and for you as well.
� Cost: The cost of maintaining a full-time bookkeeper could be more if your company’s finances are not huge. Hence, one key deciding factor while hiring a bookkeeper is to see if you require a fulltime bookkeeper or if you want to hire one on a need basis. If you plan to hire a full-time bookkeeper, you would also have to bare all the expenses � like salary, hikes and other perks.