Bookkeeping Systems

Outsource2india, a pioneer in providing outsourcing solutions, has been proving technology-driven bookkeeping services to global customers. Our stringent quality assurance processes and our use of the latest in bookkeeping technology enable us to provide our customers with quality bookkeeping services within a fast turnaround time. If your organization is looking for bookkeeping services, then consider outsourcing to O2I. At Outsource2india, we specialize in is different bookkeeping methods. Our teams of bookkeeping professionals are proficient in different types of accounting, such as, double entry bookkeeping, single entry bookkeeping and online bookkeeping services. The following are a list of the different methods of accounting.

1. Single Entry bookkeeping system

Most organization prefer using double entry accounting over single entry bookkeeping as the double entry bookkeeping system has more advantages. The way a single entry bookkeeping system is maintained is very similar to that way a checkbook register is maintained. In the single entry bookkeeping method, only one line, for each transaction is entered in the journal. All the transactions, both positive and negative are recorded in one column. The columns in a single entry bookkeeping system are usually date, description and amount. Although the single entry bookkeeping system is fairly a simple system, the drawback is that only the difference between the expenses and revenues are totaled and the individual values of each are left out. To formulate a budget, the individual values have to be known. In a single entry bookkeeping system, the individual values can only be determined by sorting the transactions and creating a table for totaling expenses and revenues.

Advantages of single entry bookkeeping system

• Additional columns can be easily added for different types of revenue and expenses
• Ideal for small businesses

Disadvantages of single entry bookkeeping system

• Detailed financial information cannot be included
• Errors can be identified only through bank statement reconciliation
• The financial position cannot be calculated
• There is no link between the balance sheet and income
• Cannot track liability and asset accounts, such as inventory, accounts receivable and accounts payable

2. Double Entry Bookkeeping System

For organizations having large assets, external suppliers of capital and thousands of transactions to deal with in a reporting period, it is more appropriate to use a double entry accounting system. There are two distinct characteristic features of a double entry bookkeeping system, which are, that every transaction is recorded in two accounts and each account has two columns. In a double entry bookkeeping method, two entries are made for each transaction. One entry is made as a debit in one account and one entry is made as a credit in another account. The entries are entered in this manner to keep the accounting equation in balance. The columns in a double entry bookkeeping system are namely date, accounts, debit and credit. The debits are entered in the left column and the credits are entered in the right column. For each debit entry, an equal and opposite credit entry is entered. When totaling the accounts, the sum of all debits must be equal to the sum of all credits.

Advantages of double entry bookkeeping system

• Errors can be easily detected
• Financial statements can be prepared directly from the accounts
• Assets and liabilities can be included in the bookkeeping accounts
• Profit and loss can be accurately calculated

3. Online Bookkeeping

Online bookkeeping is where books are updated through a online bookkeeping application. Organizations outsourcing their accounting work scan and store their business documents, data and source documents in a web based application, so that their offshore provider’s bookkeepers can remotely access these documents and update the books. Online bookkeeping is very secure as the documents are uploaded on to a secure location or into a online bookkeeping application. The most commonly used bookkeeping software is SQL Ledger and Quickbooks.

Advantages of online bookkeeping system

• Accounts can be accessed on a anytime, anywhere basis
• Online bookkeeping is very secure
• Accounts can be updated as often as required
• Online bookkeeping can help save more than 50% of costs when compared to the price that your present bookkeeper charges you
• Save on time, effort, resources, software and infrastructure

Read more about bookkeeping, bookkeeping services, and outsource bookkeeping to Outsource2india.

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O2I’s Financial Services

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