Bookkeeping is defined as the recording of all financial transactions in a company or organization. These transactions will include purchases, sales, payments and income or revenue by an individual or an organization. The bookkeeper is the one primarily tasked to do the function of bookkeeping and his department is usually denoted as bookkeeping services. The difference of bookkeeping services from accounting services in the sense that the accounting process is done by an accountant. It is the bookkeeper who records the financial entries that is used as a basis by the accountant in his accounting records.

There are two methods that are mainly used in bookkeeping services. The first is the single-entry bookkeeping system while the other one is the double-entry bookkeeping system. While these systems are commonly referred to as the “real” booking practice, every process or system that involves the recording of financial transactions is a practice of bookkeeping.

Single entry bookkeeping system is also known as the single-entry accounting system. It is termed as such because the process of bookkeeping relies on one sided accounting method of entry to record financial information. Single-entry bookkeeping system is favored in some bookkeeping services because it is a simple process and does not require the attention of a person trained in bookkeeping. It is therefore cheaper for a company or an organization to maintain since it does not have to pay a higher salary grade for incurring the services of a bookkeeping professional. However the compilation of these transactions together with other additional pertinent information should be done by a professional accountant. The single-entry bookkeeping system is adequate for business operations that are simple and when the volume of business activity is low. The other method commonly used in bookkeeping is the double-entry bookkeeping system. Bookkeeping services in most businesses use this kind of method since it ensures that each entry is recorded in at least two different nominal sections. This ensures the accuracy of the ledger entries.

The process of bookkeeping has been traditionally done by a bookkeeper in an organization hired specifically for that purpose. But the growth of online business has also brought bookkeeping online since many businesses are now outsourcing the service since they have found it to be more convenient and accurate for their company needs. Many of these online bookkeeping services are really doing the work of a bookkeeper and an accountant so the company is further served economically since it does not have to hire the services of two professional. Outsourcing the bookkeeping function online removes the workloads of a company in maintaining bookkeeping and accounting details.

They are also the ones who prepare the bank reconciliation statements of a company hence the proliferation of online bookkeeping services. These online services takes care of workloads that are done by a traditional bookkeeper like Bank Reconciliation, payroll processing, accounts payable and receivable, financial statement preparation general ledger and payment and terms. They also provide bookkeeping software to the company further aiding to the accuracy of the bookkeeping function.

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