Bookkeeping – concept, objectives and targets

accountant at workIn addition to the Economists of all profiles, Sales Managers, Finance Managers, Experts in planning, analysis and control, according to the official statistics information of the National Employment Service  a Bookkeeper is one of the most demanded professions today .

In order to become a successful Bookkeeper you need first to earn an associate degree in accounting which will be completed in two-year study or even faster if you enroll into online education through distance learning degree programs offered by some of the top colleges in accounting .Further to the certification you should possess interpersonal skills as trustworthiness, an attention to detail and strong communication skills.
Bookkeeping provides the data that are applied in various ways in different parts of accounting. This is the main reason why bookkeeping is often defined as the computational basis of accounting. Bookkeeping in accounting planning provides the foundation in a way while making the plan always starts from the present situation and afterwards enables the provision of information on the results achieved as well as the condition of the property. Bookkeeping must have reliable information in order to make the best quality business decisions.

The objectives of accounting are derived from corporate objectives. The company begins with its foundation and shall cease at the moment of its liquidation. The basic objectives of accounting are:

  1. Determination of operating results (profit or loss) in a given time period;
  2. Determining the status of assets, liabilities and own capital on a particular day of calculation;
  3. Providing data for control of the work of persons who handle certain parts of the company’s assets;
  4. Providing data for the planning of operating results, the status of assets and inflows and outflows;
  5. Providing data for control of planning sizes execution.

To achieve all of these stated objectives is essential that accounting management collects all the information that prove the creation of every business occasion i.e. collecting, classifying, re-classifying, recording, data retention and reporting the course of a business event (and all these represent bookkeeping tasks).
There are two methods of bookkeeping: simple and double-entry bookkeeping.
Simple Bookkeeping is not completed system in which records are maintained on certain parts of the property, such as cash, goods, debtors, creditors, etc. From simple (individual, isolated) records cannot be determined neither the total value of assets and liabilities, nor business results accomplished.
Double-entry bookkeeping is an integrated system of records in which are involved all parts of assets, liabilities, and capital, as well as changes in them, allowing on the base of accounting data to determine the total value of the assets, liabilities and operating results of the enterprise.