The Distance Learning Centre believes that you have to encourage your students with real life examples that stimulate them to study harder. This is why we continuously take interviews from our graduates. Today you have the chance to read tips on Bookkeeping from a small business owner that is a graduate of this school's Bookkeeping Advanced Course – Jannette McWane. She presents you the basics you have to know in order to succeed in the business world.
-Hello Jannette and thank you for the interview. The first question is about Bookkeeping. Since there are many future students reading this blog, they need to know what it is and why it is so important, so, would you be so kind as to give them an explanation about the subject?
-Sure. Thank you for having me here today. Bookkeeping is one of the most important skills for every business owner. It is the process of tracking the company’s financial transactions. This way, you are able to track how your business spends its money, what your revenue is and where it comes from, and which tax deductions you have to claim.
-For startups, it is important to have financial support or to take a loan. Does good bookkeeping improve your chances of that?
-Of course. You need to have some sort of financial record for your business, especially when you apply for a business loan. This is important for banks but also for investors who want to have a clear sight on how you spend their money. A good bookkeeper provides you with documentation that shows your expenses and revenue. This is called an income statement.
It also helps you catch things like bank errors, or paying somebody twice, etc.
-So, in other words, bookkeeping matters, because you have a clear picture of where your company spends its money?
-Clearly. When you have your bookkeeping in place, you are able to keep track of your expenses and with that to budget better. You are also able to understand the cash flow of your company better. This way, you are able to track how your business grows and improves overtime.
-Would you like to share some trends in Bookkeeping with our students?
-Of course. The most important are trends that revolve around technological changes. They continue to impact the Bookkeeping sector on a daily basis. As an owner of a business, you should know at least these trends to improve your business: cloud-based accounting that helps your company with the easier maintenance of financial data and communication. This method is possible through tools like online dashboards.
Another one is the advanced software like QuickBooks, Quickens, Sage, and others that make your work as a bookkeeper much easier. The software you use gives you access to shared resources and this way the information you use as an employee in this sector is more accessible.
The third trend I want to share is the one about automated bookkeeping. With today’s technology development, your company is able to complete it's accounting tasks more quickly than ever before. And every student must be sure that they have the chance to learn these things through a course in Bookkeeping.