With the appearance of accounting software, bookkeeping seems to have lost its validity since the program is responsible for delivering complete information ready to be interpreted and analyzed. Accounting is a tool for analyzing and interpreting company information. Each day becomes more important at the senior management level since accounting is the basis on which administrators must make economic and financial decisions.
Importance of accounting and bookkeeping The true added value of accounting and bookkeeping revolve precisely around the diagnosis that is presented to the company of its economic and financial reality and the projections and trends that can be identified based on that reality. This also offers the possibility of identifying shortcomings and opportunities and formulating appropriate strategies for one situation or another. Accounting tells the company how it has been financially, how it is currently, and how it will be if trends continue. However, it is not enough to have that knowledge, but these values must be interpreted in accordance with the reality of the economy. This means that accounting should rely on other branches of economic sciences to achieve its objective, becoming a managerial tool for the company.
Correlation with other departments
You cannot make decisions without knowing sales and their behavior, the behavior of production or marketing costs, the profile and behavior of customers and suppliers, or their own employees; fortunately, all that can be extracted with accounting. If you do not know the profit margin and the level of resource consumption in each area of the company and of each product, then you cannot decide either which strategies to follow, nor can you define where to expand, what to produce, and stop producing, etc.
Bookkeeping and its importance
The bookkeeper, or technical accountants, plays an important role in many companies since they oversee maintaining the accounting books; therefore, they have the responsibility to register all the corporation’s financial activities. Their work is of value to all types of companies, whether public or private, since these individuals monitor the flow of money entering and leaving the corporation. Large companies tend to have more than one Book Holder in their staff, while the rest prefer to have only one professional in charge or prefer to outsource to a specialized accounting firm. Bookkeepers produce financial reports based on information collected from the books they carry. Based on them, the shareholders, managers, and accountants verify the company’s financial status and determine the most suitable way to proceed in future projects.Role of bookkeepers
Bookkeepers manage and control the accounting books of the company by establishing parameters for those books. They also work to balance them, and they are trained to take advantage of programs and systems capable of simplifying work. They are called to review and record income and activities.
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