If you are new to Bookkeeping and looking for a bookkeeping short course, you may find many of them online. If you want to get a grip on Bookkeeping, this will be the best course for you. However, you can boost your career with the procedure. If I say about bookkeeping short course Australia, you will see the Basic Bookkeeping Training with Babita Pandey.
Melbourne Bookkeeping Courses
If you are looking for a Xero bookkeeping short course in Melbourne, you must choose bookkeeping training by Babita Pandey. Our low-cost short bookkeeping courses are accessible to newcomers and experienced bookkeepers.
With our bookkeeping short course, you will be able to apply your new knowledge immediately at work. We can help you gain an edge over other candidates if you’re looking for a job. You will advance your skills in accounting with our bookkeeping short course.
Bookkeeping: What is it?
Before moving forward, we should know what Bookkeeping is. We can define Bookkeeping as the process of keeping track of financial transactions made by a firm.
Bookkeeping varies from business to business. Every type of transaction requires a different method of keeping records, depending on the need. That documentation can be a receipt, an invoice, a purchase order, or some similar type of financial record showing that the transaction took place.
Why should you keep a book?
Once you know what Bookkeeping is, you should also understand why it is necessary or why it matters. Bookkeeping keeps a record of every transaction you make. Effective Bookkeeping gives companies an idea of the revenue it is generating. Also, it provides data so that you can make plans for the future. It helps in recognizing the revenue and income targets. However, once your business is established and starts generating high revenue, it will be difficult for you to maintain the records. Thus, in this case, you must go for the option of hiring a bookkeeper.
Small companies do not hire bookkeepers or, specifically, full-time bookkeepers because of fewer transactions. Once it grows more extensive, you will need a bookkeeper to keep track of all your records.
Do Accounting and Bookkeeping Differ?
Most often, Bookkeeping and accounting are taken as the same job. However, it has several differences. When we talk about Bookkeeping in a business firm, it is for keeping a record of a transaction made. Whereas in accounting, an accountant summarizes the transaction made by the firm. Also, the accountants analyze, interpret, and report financial information for the business firm. Using the accounting journal, bookkeepers record all transactions, classify them as debits or credits, and organize them according to their chart of accounts. In contrast, an accountant makes a summary of those transactions.
Who is a bookkeeper?
As I have mentioned briefly about the duties of a bookkeeper, now we will talk about it in detail. The responsibility of a bookkeeper includes assembling receipts and entering data.
Furthermore, they are liable for recording every financial transaction in your general ledger utilizing a process known as journal entry recording. It is more like putting all your financial transactions in accounting software.
However, bookkeepers will help keep an audit record and make sure that your financial records remain accurate and that your deductions are authorized. The primary responsibilities of a bookkeeper are to prepare the following accounts:
- Revenue statement, which shows your revenue and costs over a set period of times
- Balance sheet, which shows where you stand financially at any point in time
- Cash flow statement, which shows how cash and cash equivalents enter and leave your business
- Statement of changes in equity reflects how your share of capital and reserves have changed over time.
What You Should Know About Bookkeeping Short Course Online
However, there are various types of Bookkeeping, as mentioned before. We will discuss them now.
- Cash: The account through which all business transactions are made. To keep track of cash receipts and disbursements, bookkeepers usually keep two journals.
- Receivables: When you sell products and services to customers but do not get paid for the goods and services immediately, then you have receivables. Money due from customers is tracked in this account. Keeping this information up to date ensures that invoices are accurate and sent on time.
- Inventory: A record of your products in stock. A physical count of the list on hand should verify the numbers you have in your books.
- Payables: An account that tracks when you still have to pay for everything you have borrowed and will ensure you do not forget those payments.
- Revenue: Revenue that you receive from all sales transactions in this account. It is essential to record sales accurately and timely.
- Buying: Tracking materials or goods you purchase for your business in your purchases account.
- Payroll expenses: Tracks the salaries and wages that your employees receive. Most businesses find this to be their most significant expense. It is essential to keep this information accurate for tax requirements.
- Retained Earning: In a retained earnings account, all of the business profits that are not paid to the owners are reinvested in the business. You can use it to track how your business has performed over time.
How to keep a record of your finances?
Before starting Bookkeeping, you must know what types of bookkeeping service you will perform and which method you will choose for this. However, firstly you must consider the volume of the transaction of the business. Bookkeeping is necessary because you may run into complications if you have a small business and are using a complex method. Similarly, when you use a simple way for involved record-keeping, you will not keep track of it. You can learn Bookkeeping online quickly by enrolling in a bookkeeping short course.
Here are a few ways to find the right one for your business.
Bookkeeping with a single entry is the easiest method. Small and medium businesses, as well as private corporations, are the best candidates for this method. A cash book is usually used to record all incoming revenue and outgoing expenses relating to a single transaction. However, the single-entry system does not require you to have formal training in accounting.
A double-entry system of Bookkeeping provides more excellent stability. It follows the concept of debits and credits for every transaction.
Double-entry Bookkeeping is much more suited to large or public businesses and businesses that mainly buy and sell by credit. Double-entry systems are often chosen as a system by companies because they leave fewer margins for error. Using this method, you can essentially ‘double check’ your books because every transaction is recorded as two matching yet counteracting accounts.
Cash-based or accrual-based
For your Bookkeeping, choose between cash and accrual basis. The timing of your business’s revenue recognition and expenditures will determine how you proceed.
Revenue occurs when your business receives cash. Paying for expenses counts as an expense. It means that when money enters or exits your accounts, it is recorded.
Recognizing revenue is done by the accrual method. Likewise, expenses are recorded when incurred, typically together with the income for the same period. A transaction is recorded without the entry or exit of actual cash. You can mark your sales and purchases made on credit right away.
As you are now familiar with Bookkeeping, you can choose the correct bookkeeping short course online. You will get Basic Bookkeeping Training with Babita Pandey. However, she will give you one-to-one bookkeeping training so you can go ahead in your career.