Why Bookkeeping Is Still Important
The role of bookkeeping has evolved over the last few decades. Thanks to software and apps, there are plenty of ways to keep track of your finances without knowing everything about accounting and coding.
But even though bookkeeping is no longer a requirement for many small businesses, bookkeeping jobs are still crucial for those who want to make sure their finances are in order.
So even if you’re not going into business for yourself or working as an accountant, having a good grasp on accounting can be helpful in other aspects of life—and we’ll explain why!
Understanding of Accounting
The knowledge of accounting principles, financial statements and how to use them is the foundation for any bookkeeping business.
Most people starting new in bookkeeping need this kind of guidance before they consider themselves independent accountants. Understanding accounting software and its primary functions will help you work with clients more effectively.
Time Management Skills
Time management skills are a vital part of being a successful bookkeeper. But they’re also crucial in all aspects of life, from managing your finances to being an effective employee or business owner. Being organized and aware of deadlines can help you stay on top of your work so you can get what needs to be done and move on to the next task without feeling overwhelmed by the amount you have left to do.
If you’ve never been very organized, it might seem like learning time management skills is impossible—how can you manage time when you don’t even know where it goes? The first step toward building these skills is learning how much time things take and planning accordingly.
This is one of the essential skills for a bookkeeper to have. Organizing data, which can then be transferred into financial reports, is essential in any accounting position.
Organization skills are even necessary regarding how well you understand your day-to-day records or those of your company. For example, suppose you aren’t an organized firm. In such a case, it might be difficult for others outside your organization to figure out exactly where things are or how they work together as a whole unit—which can lead them astray when trying to perform their duties correctly!
Intuit financial experts explain, “Examples of some tasks include: setting up their books and chart of accounts, perform monthly categorization, reconciliation, running reports (e.g., balance sheet and P&L statement), closing their books at the end of the year, and general QuickBooks tasks.”
Attention to Detail
The importance of attention to detail can’t be overstated. The following two examples illustrate how attention to detail makes a difference:
- An accountant forgets to send the client a bank transfer receipt, which leads them not to pay their bill on time. When it comes time for tax season, they’re unable to file because they owe money in back taxes due to not having paid their bill on time.
- An accountant sends an invoice promptly after completing work and trusts that the client will pay when they receive it. They have no reason not to believe that their invoice will be received in good faith; however, this accountant never receives payment from this client.
As you can see, bookkeeping is a massive and essential business area. It’s not something the average person needs to worry about, but it’s something every business owner should consider. So, getting good at bookkeeping is essential if you want your company to thrive.