Accountancy is composed of activities like the recording, reporting and the analysis of the financial transactions. Out of these activities, the first one, that is, of recording, is done by the bookkeepers. Therefore, accountancy is a wider term than bookkeeping. The bookkeeper are duty bound to prepare the accounts in an organized and systematic way so that these can be presented in a meaningful way for reporting and analysis part, the next steps in the accounting process.
In the past, the bookkeepers used to maintain the books of accounts, either on the single entry or the double entry basis. They record the transactions as the seats as well as post the same in the relevant books. They maintain the primary and secondary books of accounts, as the day book, cash book, sales book, stock book, etc. The modern bookkeeper records these transactions in the computers. They make use of the computer software for the same.
The bookkeepers feed the entries of the bills, receipts or the payments, the debtors or the creditors, etc. in the suitable classifications or heads of accounts. Sydney bookkeeping services can classify the various heads into different categories like the capital or the revenue items. It is not necessary that the bookkeeper shall be having the knowledge of the accounts since the knowledge about the same can be provided while they are being trained on the computer bookkeeping software. However, it does help to have the knowledge of accounting.
The growth of businesses and the demand for more bookkeepers has led to the fast growth of the training centers for the same. The students can then take up their independent career or seek employment with the organizations or the chartered accountants. The bookkeeping franchise is also an attractive business proposal. This is the fastest mode of growth of business both for the franchise provider as well as a taker. The franchise model strives to cash in on the market value of the brand name to get to the target market in the fastest way. It also gives the franchise the exclusive right of marketing in a particular geographical region. Therefore, the franchise of a brand of bookkeeping services could be catering exclusively to the area mentioned in the agreement. The franchisor is bound by the terms of the agreement; not the give the franchise to any other person in that region. Usually, the first comers in an area can get the maximum area as their exclusive domain of functioning.
The bookkeepers complement the activities of the accountants. They are not their substitutes. The filings for the tax and other compliance are looked after by the Chartered Accountants. The bookkeeper will organize the documents relating to the transactions, feed them into the computer and then file them properly under suitable indexes. These play a major role in enabling the smooth running of the organization. The organized data is then used for the calculation of the different taxation purposes.