What Are the Three Types of Bookkeeping?

Are you hiring bookkeeping services for your company? If yes, you might want to hire professionals who can do the job right! But how do you know they’re offering a good job? Well, you must know the major types of bookkeeping services in Bank so that you can know whether they are offering genuine services or not. 

Single-entry Bookkeeping 

Single-entry bookkeeping services are ideal for businesses that do not have lengthy or complicated financial recordings or transactions. As the name goes, it involves recording transactions in a single column, where the transactions recorded are either revenue or expense. 

This approach works well for small firms with a low volume of transactions because it doesn't call for any specialised software or accounting knowledge.

Single-entry bookkeeping does have certain restrictions, though. Due to the lack of comprehensive financial reports and consideration of transaction relationships, it presents an incomplete picture of the company's financial situation.

Double-entry Bookkeeping 

This is one of the widely used types of bookkeeping services in Greenwich. Here, the transactions are recorded twice, mainly as debit and credit, what goes and what’s coming. This approach gives a comprehensive view of the financial health of the company by guaranteeing that each transaction has an equal and opposite impact on the financial statements.

Computerised Bookkeeping 

Now comes the computerised bookkeeping service. Accounting software is used in computerised bookkeeping to organise and record financial activities. With real-time access to financial information and no chance of human error, it is the most accurate and efficient technique of bookkeeping. Additional capabilities offered by computerised bookkeeping software include financial reporting, spending tracking, and automatic invoicing.

Which is the Best Method for Your Company?

Well, which type of bookkeeping service you choose will depend on a range of factors, from the size of your company to the number of transactions you have in a financial year. For smaller businesses, it can be a rather easy job, while for larger companies, bookkeeping service can be tough. 

Therefore, these are some of the types of bookkeeping services every professional will offer you. Make sure you understand them before you hire one for your firm.