What is Bookkeeping?
Bookkeeping is the practice of recording the financial transactions of a business on a day-to-day basis. Bookkeepers are responsible for keeping businesses’ finances in order by tracking transactions and, in turn, providing accurate financial information to funders, stakeholders, business owners, and managers.
The core duties of a bookkeeper include data entry, account reconciliation, and the creation of management accounts. Additional duties can include credit control and VAT. It is worth noting that the role of a bookkeeper is constantly evolving as digital accounting systems develop.
Why is Bookkeeping Important?
Bookkeeping is an essential part of any organisation as it ensures stability. This stability is achieved through the structure that bookkeeping brings – this allows for easier financial management, tax preparation, and financial compliance.
Bookkeeping also provides stability in that it gives an oversight into a businesses’ or charity's future through aiding in budgeting, planning, and analysis. This allows for sustainability and growth in organisations as business owners and managers then have a greater understanding of their strengths and weaknesses, all due to their bookkeeping.
On a more basic level, it is important to note that without good books, an organisation is unable to have good accounts – accounts are essential to businesses’ and charity's stability as they provide insight into their performance on a much deeper level – but this is not possible without the groundwork that bookkeeping provides.
Bookkeeping Today
Bookkeeping has certainly evolved since the arrival of accounting software such as QuickBooks and Xero. This has led many to believe that the role of the bookkeeper is diminishing, but this is not the case.
The arrival of accounting software, whilst making a bookkeeper’s job easier, does not fully automate the job a bookkeeper does. Accounting software is great for pattern recognition within data to make the bookkeeper’s role easier but does not fully replace the human element that bookkeeper requires. Eventually, it may be able to do so, but we are not there just yet!
It is worth noting that the impact of this software does mean the modern bookkeeper’s role has expanded. Where previous bookkeepers would simply review data gathered in anticipation for accounts to be prepared, the modern bookkeeper now has many more core duties, as mentioned previously.
Our Courses
We currently offer two bookkeeping courses through our distance learning academy. The AAT Level 2 Foundation Certificate in bookkeeping provides an understanding of day-to-day duties of a bookkeeper as well as skills and knowledge in many financial areas, including double entry systems and reconciling. The AAT Level 3 Advanced Certificate in Bookkeeping builds on this knowledge and enables you to practice as a professional bookkeeper registered with the AATQB. Find out more by visiting our distance learning academy here.
If you are interested in us bookkeeping for you, please contact us via email at hello@accountingforgood.co.uk, phone at 0300 998 3000, or book a free initial consultation with Kay, our Director, here. We would love to talk with you!