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As an owner of a recently started business venture, knowledge on the different types of bookkeeping systems will probably be able to help you in deciding the type of bookkeeping system that you might select for your business transactions. You could also get information related to the totally different methods of book keeping being adopted globally. There are literally two types of book keeping systems namely Single Entry Bookkeeping systems and Double Entry Bookkeeping systems.

Single entry bookkeeping systems. If the type of Business that you've just started falls under the small scale class, single entry book keeping system would be very useful. This type of system maintains a record of the enterprise transactions associated to cash disbursement, cash receipt, purchases and sales. This type of system is more of a casual system suitable for small enterprise transactions. The bookkeeper will often use this system to take care of a each day summary of the cash receipts and money payments and in addition a monthly abstract of the cash receipts and payments. In a single entry book keeping procedure, every transaction will affect only one account. Within the case of a double entry transaction, every transaction would have an entry on both the accounts.

If there is a sale of a particular item, the cash receipt or money deposit account only be up to date with the quantity received. The corresponding entry in a sales account is not going to be made in single entry bookkeeping system.

Therefore it would not provide the complete financial standing of the assorted systems within the business. If you'd like an in depth accounting of the completely different systems involved in enterprise transactions, you could possibly opt for a double entry system.

Double entry bookkeeping system. This is the type of system that is most commonly used by the bookkeeper or an accountant in any business organization. This system is utilized by the bookkeeper to keep full accounting particulars of the business transactions. This system additionally introduces the idea of debit and credit. As there are a lot of accounting systems in a enterprise, a debit entry in one of many accounting system will often be accompanied by a credit entry in another accounting system or in more than one accounting system. Equally, a bookkeeper could be required to make more than one debit entry for a single credit entry. The monetary performance of an organization can be clearly ascertained based mostly on the accounting details obtained from the double entry accounting systems.

Basically, there are methods of book keeping. One is the guide method of bookkeeping and the opposite is the computerised technique of bookkeeping.

Guide bookkeeping is the oldest type of bookkeeping where within the bookkeeper might be utilizing a journal book or a ledger book to record the different accounting entries related to the enterprise transactions. Small business owners nonetheless desire guide methodology of bookkeeping as it is economical and is suitable for maintaining less complex business transactions.

Computerised bookkeeping helps the bookkeeper to carry out bookkeeping of complicated business transactions in a much easier and sooner manner. An accounting software system is usually used to do the accounting entries. The advantage this system has over the manual bookkeeping system is within the ease of producing reports and performing calculations. Advanced calculations can be carried out accurately and quickly.

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