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Common Terms Regarding Accounting and Bookkeeping Systems
Professionals usually draw a distinction between accounting and bookkeeping systems. The distinctions, however, are not always obvious to laymen that do not have a lot of experience in these areas. Knowing some of the key terms that accountants and bookkeepers use, however, can help ensure that you choose a reliable system for your business.
Trial Balance - A trial balance contains all of the accounts in a business's ledger. For instance, a grocery that has several sales clerks will need to combine the sales records from each clerk to determine the trial balance. Today's businesses often use financial software that combines the ledgers automatically while keeping separate tallies for each transaction.
Payroll Tax - All employees working within the United States must pay payroll taxes. The exact amount that each employee pays, however, can differ significantly depending on how much they earn, how many dependents they have, and where they live. Payroll tax can include federal, state, and city taxes. Financial software that connects to an online database should make it easier for bases to store and retrieve the payroll tax information that they need for each employee.
Time Stamp - In the past, businesses have often relied on machines that would stamp a time sheet with the exact time that an employee begins and quits working. Today's technology, however, makes electronic time sheets more efficient and accurate, especially for businesses that require employees to use computers daily.
Bookkeeping Software - There a numerous companies that offer bookkeeping software. Many of the latest pieces of software have online applications that allow businesses to manage accounts via the Web. The online bookkeeping service might also provide direct deposits, tax preparation, and legal counsel. The services, however, can vary drastically from one provider to the next.
AIPB's mission is to achieve recognition of bookkeepers as accounting professionals; keep bookkeepers up to date on changes in bookkeeping, accounting and tax; answer bookkeeping and accounting questions; and more.
Bookkeeping is the act of recording financial transactions within an organization or by an individual. A bookkeeper tracks income, expenses, amounts and dates, often using accounting software, collecting the financial information necessary for filing tax returns for the IRS. Bookkeepers are financial record keepers, but do not have to be accredited like an accountant or CPA does. Bookkeepers can assist in a firm's tax preparation, accounting, filing, income, payroll, day-to-day financial transactions, double and single entry, solutions, basic inventory management, financial controls, debt management, and balance sheets. An accounting system is a bookkeeper's list of debits and credits of a business. Accounting and bookkeeping systems may also refer to computer software or online systems that help accountants and bookkeepers do their jobs more efficiently. Such software can also be purchased off the shelves by consumers looking to balance their own books for a small business. This can act as an aid when doing taxes, tallying daily ledgers, and keeping track of a fixed asset or liability. When looking for an accounting and bookkeeping system for your small or large business, consider which software is compatible with your type of computer. That's the first step. Go online to check out tutorials on various financial and business software. You'll also find directory listings of wholesale stores that sell accounting and bookkeeping systems software and books. Look up price comparisons, product reviews, certified public accountants near you, local branches of tax return companies, retail and wholesale stores selling accounting and bookkeeping systems software, and business and financial information.