Everything you need to know to get started with Bookkeeping

The practice of bookkeeping is not something new for the human race. Some records indicate that the existence of Bookkeeping was in 6000 BC. Nearly every ancient civilization had some type of financial and numerical records, according to historical artifacts.

Accounting Services in Melbourne came a long way from having a rich history to integrate rules and guidelines with the latest technology.

Bookkeeping and Accounting – two sides of the same coin

You might have asked yourself this question at least once if you were on the boat of starting your venture in the sea of business. Accounting and bookkeeping are both comparable and dissimilar at the same time. To put it another way, accounting oversees evaluating, classifying, analyzing, reporting, and summarizing financial data, whereas bookkeeping oversees documenting financial transactions.

bookkeeping and accounting may appear to be the same job to most people. This is because accounting and bookkeeping have an uncanny resemblance in that they both deal with financial data and require basic accounting expertise to classify and generate reports. But, at the same time, they have significant differences that distinguish them; let’s have a look at a few of them.

  • You can become a Bookkeeper If you can show that you’re good with statistics and have a keen eye for detail. To be an accountant, though, you must have strong logic skills and the ability to solve big-picture problems.
  • The data provided by bookkeeping alone isn’t enough to make major decisions. But the financial statistics provided by an accountant allow the management to make critical business decisions as they are based on financial data.
  • The goal of bookkeeping is to keep accurate and orderly records of all financial activities. On the other hand, accounting assesses a company’s financial status and then communicates that information to the appropriate authorities.

The fusion of technology with accounting and bookkeeping.

The distinction between bookkeeping and accounting is gradually blurring as new trends emerge in the industry. Major aspects of accounting are slowly being integrated into the bookkeeping process, thanks to the emergence of accounting and bookkeeping software.

With the paradigm shift in technology, task-oriented projects are no longer a burden for today’s accountant. Accounting software packages are becoming more automated because of dynamic accounting technology, and the accountant’s role is shifting to that of a business advisor.

Here are a few major technologies that changed the way we look at accounting.

  • CLOUD COMPUTING:

To streamline all their information, many accounting firms are increasingly employing cloud-based solutions. Cloud computing is a form of Internet-based computing that allows computers and other devices to retrieve shared computer processing resources and data on demand. This allows the accountants the flexibility to execute accounting activities from anywhere, as well as transmit financial data and reports over the cloud.

  • MOBILE ACCOUNTING:

Mobile technology is responsible for bridging the gap between accountants and their clients. For data access, accountants are becoming more reliant on their mobile devices. As smartphones and mobile devices become more intuitive and accessible, an increasing number of accounting and bookkeeping firms are moving their operations online.

  • ARTIFICIAL INTELLIGENCE & ROBOTICS:

Artificial intelligence and robots are cutting operating costs and increasing efficiency by automating complicated and repetitive jobs and processes with exceptional accuracy. The financial statistics obtained by Robotic Process Automation (RPA) maintain top-notch accuracy. With this level of precision accomplished without human interference, the accountant can focus on higher-value operations.

Final words

Technology has allowed us to replace the time-consuming and exhausting task of compiling and computing data with a single click. Technology when combined with traditional practices always yields better results, one such service provider is Xero bookkeeping services in Melbourne. They offer time-saving processing tools and specialized accounting and bookkeeping software that step up the process of data entry and computation. For more information,.

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