subject: What Is Bookkeeping In Any Case? [print this page] Anybody who's worked in an office environment at some point or another has had to go to accounting. They're the individuals who pay and send out the bills which keep the business running. They do much more than that, though. From time to time referred to as "bean counters" the bookkeeper also monitor earnings, expenses and losses. Unless you're running your own business and working as your own bookkeeper, you would not have any way of knowing just how profitable - or not - the business is without some form of bookkeeping.
No matter which industry you're in, even if all you do is balance a checkbook, its nevertheless accounting. It is part of even a kid's life. Saving an allowance, spending it all at once - they are accounting principles.
What are some additional businesses where bookkeeping is critical? Well, farmers have to stick to prudent bookkeeping procedures. Many of them operate their farms year to year by taking loans to plant the crops. If it's a good year, a profitable one, then they can pay off their loan; if not, they might have to carry the advance over, and accumulate more interest charges.
Every company and each person needs to have some sort of accounting system in their lives. Otherwise, the finances can get away from them, they do not know what they've spent, or if they can expect a profit or a loss from their business. Staying on top of accounting, whether it's for a multi-billion dollar company or for a individual bank account is a necessary action every day if you're smart. Neglecting doing it can mean anything from a bounced check or posting a loss to a company's shareholders. Both scenarios can be just as destructive.
Accounting is fundamentally information, and this information is published regularly in business as a profit and loss report, or an earnings statement.
by: Bob Danes
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