In order to decide business strategies for the future, you must know the current position of your company or business. The idea of where the business actually stands in the market is very crucial, as only after that will you be able to make an effective business plan. It is obvious that this task could be done only on the basis of the profits and losses recorded in the accounts. The amount of cash incoming and outgoing is recorded. After that, a decision is made about whether the company is doing well or is lagging somewhere, and then the loopholes are identified. Once the problem or issue is recognized, a business consultant advises a solution, then optimization of these solutions and strategies is done, and the company’s progress is moderated.

THE ART OF BOOKKEEPING:

The process of recording the debits and credits, that is, revenue and expenses—in short, all the financial transactions—is called bookkeeping. Just like every field has its own expert, bookkeeping could be performed by either trained and experienced professionals themselves or the tools that are designed by them to help you with this task. David Varon, the founder of Lilyka Solutions, has over 35 years of experience in this field, and besides being the top accountant in the market in Florida, he is also a business consultant and has managed countless projects at the same time, single-handedly. So, if you are based in Florida and want these expert bookkeeping services, feel free to visit the website and learn more about the service, the plans, and the perks that come along.

The bookkeeping, which includes the check and balance of all financial transactions, could be of various types in terms of how the data will be recorded and also in what state the data will be recorded.

THE TYPES OF BOOKKEEPING:

• Single-entry bookkeeping: just as the name suggests, it is only a one-way process where no double checks are involved. The transactions are recorded at once without bothering whether the cash was debited or credited. This category can also be called cash-based bookkeeping; the transactions are recorded on the basis of the cash in hand, whether it is being paid or received.
• Double entry bookkeeping: double-entry bookkeeping is somehow more suitable for big enterprises and businesses; here, the transactions are recorded as how much has been credited and the amount of financial asset being debited out. So we say that it is a double-step process that somehow provides a double check as well. This category could also fall under accrual-based accounting, in which the cash isn’t necessary to be in hand physically if an agreement has been made by the company to pay a certain amount to any other business or provider; it will be recorded regardless of whether the amount has been debited or not.

The data can be recorded in various forms as well, which may include the financial statement, the journals, the cash registers, the ledger system, and much more.