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Different options of bookkeeping

By Jinny Rios Subscribe to RSS | July 19th 2012 | Views:
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The options for arranging the bookkeeping (in Finnish=kirjanpito) of a company are numerous and varied. The size of the company, the number of financial functions and the transactions as well as the different ways the data gathered is utilized are only few factors which should be taken into account when considering the way the company's bookkeeping is arranged. The self employed free lancers are entitled to keep only single-entry bookkeeping, while even for them the double-entry bookkeeping is a beneficial way to gather multifaceted information about the state of the finances.

The ancient way of keeping the accounts on finances is to write all the transactions down manually on the pages of the books dedicated specially to financial information and to be remembered later on, when for example yearly expenses and surpluses are summed up. Thus the name bookkeeping. In today's modern world exactly the same is made, but since the rise of the computers, many functions of the bookkeeping are made automatically instead of someone actually writing the transaction down. Even we still receive receipts, bills and payslips in paper, much of the information handled in the bookkeeping is nowadays provided in digital format.

Electronic bookkeeping is the modern way of doing and arranging the bookkeeping, many of the accounting companies providing more software services than traditional bookkeeping services. Many of the companies offer softwares which handle most of the bookkeeping and accounting functions, producing for example reports in minutes while in the past producing of those could take even days. Many of the software services feature as well a digital archive, where all the bookkeeping documentation can be stored easily and without taking too much office space.

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