What is bookkeeping?
Bookkeeping is by definition accounting.
When accounting, all business-related expenses and payments are systematically registered, and bookkeeping is therefore a main area within the operation of a company. All transactions must be able to be documented to the authorities, meaning that it is required to have relevant attachments for all of them. All transactions including purchases and sales, must be registered with, among other things, date and amount.
Double entry bookkeeping
Double-entry bookkeeping covers the type of bookkeeping in which each transaction is posted twice. This means that the same amount is recorded in debit and credit, and this is done to maintain balance in the accounts. When this method is used, equal amounts on both the debit and credit side must be used balance out the accounts.
Debit and credit are accounting terms that represent each side of the balance. Debit is when money is deposited into an account. Credit is when money is withdrawn from an account. The balance and income statement are used at the end of the company’s annual accounts.
It is not a requirement to do double-entry bookkeeping but most companies today use this type of bookkeeping.
There are several attachments and documents that need to be kept track of, and this can easily become a messy affair when it comes to accounting. This is of course not how it should be if the accounts should be done correctly. By using digital bookkeeping, you get an accounting program that contains valuable information about the company’s finances and accounts.
An accounting program will also help you keep track of all the attachments needed to document the company transactions. Also, it will make sure that the bookkeeping is done at the right VAT rate and expense account, and that the balance is maintained.
Accountants save two to three days a month
By optimizing the process around company expenses, Alm. Brand found that their accountant saves two to three days a month. They use the Acubiz solution, Acubiz Corporate, where the process now is easy and convenient for both employees, approvers and the finance department.
Do you want to know more?
You can read more about how Alm. Brand is using Acubiz to optimize their expense processes. We are also happy to help with good advice when it comes to processes related to expense management.