Manual vs. Automatic Bookkeeping
There are two main methods of bookkeeping: Manual and Automatic.
Manual vs. Automatic Bookkeeping
There are two main methods of bookkeeping: Manual and Automatic.
Manual Bookkeeping is the traditional method of preparing and documenting your business’s financial records, using a pen-and-paper ledger or an offline program like Microsoft Excel or Word to record income, expenses, interest, and any of the other cash flow items that appear in a financial report. This method is recommended if you prefer a more hands-on approach, but be warned that it can be very time consuming and leave a lot of room for human error.
Automatic, or online bookkeeping, uses software that does the calculations and data entry for you. There are many accounting software’s out there, such as QuickBooks, that can help you track income and expenses much faster than you could with a traditional ledger. These software’s are also able to link to other financial programs that your business uses, like online banking or mobile payment applications. As such, automatic bookkeeping creates a digital ledger that records all payments you make and receive through your linked software’s. Afterwards, the program will make the calculations for you, giving you an accurate picture of your total income and spending which will be updated every time your money moves.