Importance and Levels of Bookkeeping
Updated: Oct 8, 2020
"Bookkeeping" is task-related and only cover gathering documents, record transactions and post to General Ledger. General bookkeeping includes the "data entry" that is known by everyone. A general bookkeeper needs to have some understanding of accounting terms, processes and expected results to complete the task.
Intermediate bookkeepers can review, confirm or correct and reconcile the transaction accounts. (Bank accounts, credit card accounts and other accounts used to record and conduct business transactions). The intermediate bookkeeper can prepare Profit and Loss and Balance Sheet report. Intermediate bookkeepers usually have a more robust understanding of the profit and loss than the balance sheet.
An advanced bookkeeper, can complete all the steps above and present, explain and substantiate the results. The advanced bookkeepers have extensive knowledge about accounting requirements for the different market segments (retail, service, construction, manufacturing, etc.). They will be able to provide valuable insights about the operational results and impact on owner's equity.
In other words, before contracting a bookkeeping service, establish which outcomes you would like to have from that service. You'll be able to assess whether the person/company you're hiring is the correct one for your business. Reassure Accounting works in the advanced bookkeeping level, because we understand that bookkeeping is part of the process of giving guidance for making-decision in the company.