Often times some businesses do not value the importance of bookkeeping and accounting. Statements like bookkeepers do not bring the money so I can do without one are often heard. What most business owners fail to understand is even though bookkeepers and accountants do not bring in the money, they provide very vital support to any business.
Bookkeepers and accountants are trained to keep accurate records of transactions happening in any organisation. This information once captured into the entity’s accounting package is then used to draw up management report that is given to management and business owners so they can see at a glance how the business is performing. In short so they can see how their efforts are paying.
Bookkeepers and accountants do not just debit and credit accounts simply because for every debit entry there has to be a credit entry and vice versa, no. They have to follow certain acceptable financial reporting standards when they do the capturing and processing of financial information in the accounting package. This requires a lot of knowledge and ongoing continued professional development as changes in standards are brought in every now and again.
This is then used by different users of financial statements which vary from prospective Investors, banks if the entity wants to borrow money, shareholders etc.
We may not agree but accounting is the heart of a business. Without proper record keeping, how is a company going to know what their liabilities are and who owes them? Some transactions might just fall through the cracks. Remember we have among us some companies that will only pay upon presentation of an invoice and if the entity does not know who still owes and how much some money might never be received.