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Frequently asked questions about bookkeeping

Looking forward to hire a bookkeeper for keeping a record of all the transactions of your company?

Want to know how and when the best time to hire a bookkeeper is?

This and many other such questions make you wonder what to do and what not to do about bookkeeping. To save you from the trouble of getting to know about bookkeeping, we have gathered here some most asked questions that you will find helpful for the progress of your company.

  • When should we start the bookkeeping?

The best time to start bookkeeping is the day when you put the foundation of your business. This way you can save your business from mistakes that you could make in the start of your business when you are immature and your business is just starting. If you are afraid that you could not spare sometime for it, and then here we are to tell you that bookkeeping, even if large, then it would take only 2-3 hours to keep the record of the things.

  • If you have an accountant then do you need a bookkeeper?

This question might pop into your mind that if you have an accountant at the firm already, then do you need to have a bookkeeper as well. The answer depends largely on the situation of your company. If you have a very large business and you can afford to hire a bookkeeper along with the accountant then, you can hire both as both can work together for betterment of your company. However, if you have a small business and you are the accountant of the business as well, then hiring a bookkeeper is not necessary. Just refine your skills by learning something extra about bookkeeping as well.

  • Is there some big difference between accountant and bookkeeper?

Yes there does exist some difference between the two as the accountant is supposed to know all that is happening around the accounts and maintain their record and ensure that every financial matter is being put in paper and pen. While the bookkeeper is the person who uses the data generated by the accountant and analyses and manages it for the bookkeeping purposes. All the work of the bookkeeper depends upon the work provided by the accountant, therefore it is important that the accountant have to be a responsible person who has the skills to keep all the records in place.

  • Why do I need separate software for bookkeeping?

A very frequent question asked about Irenas bookkeeping is, if we have excel with us for accounting record keeping then why do we need a separate software for bookkeeping? The answer is simple, that technologically advanced software is something that helps your bookkeeping get better. Excel is a software that does not offer very complex functions, using the advance software helps you have these functions and do complex functions and database management as well.