What Is Bookkeeping Anyway? Posted By : Bob Danes

Any person who's worked in an office environment at some point or another has had to communicate with the accounting department. They're the people who pay and send out the bills which keep the business running. They do much more than that, though. Sometimes referred to as "bean counters" they also keep their eye on profits, expenses and losses. Unless you're running a small business and acting as your own bookkeeper, you would have no way of knowing just how lucrative - or not - your business is without some form of accounting.



No matter what industry you're in, even if all you do is keep a checkbook, its nevertheless accounting. It's a part of even a child's life. Saving an allowance, spending it all at once - these are bookkeeping principles.



What are some other businesses where bookkeeping is crucial? Well, farmers have to respect careful bookkeeping procedures. Many of them run their farms year after year by taking loans to plant the crops. If it's a good year, a profitable one, then they can pay off their loan; if not, they might have to carry the loan over, and accrue additional interest charges.



Each company and each person needs to have some kind of accounting system in their lives. If not, the finances can get away from them, they do not know what they've spent, or whether they can expect a gain or a loss from the business. Staying on top of accounting, if it is for a multi-billion dollar business or for a individual checking is a vital action on a daily basis if you are smart. Not doing it can mean anything from a bounced check or posting a deficit to a company's shareholders. Both scenarios can be just as destructive.



Accounting is essentially information, and this information is published regularly in business as a profit and loss statement, or an earnings report.

Bob Danes has been writing for business for more than four years. He has recently become involved in appliances and has been writing articles regarding combo washer dryer and washer and dryer combo to a number of online publications.