Each month you balance your cheque book to the penny. You meticulously keep track of all of your expenses and follow the budget you have created on a spread sheet. These attributes give you enough confidence to apply for a part-time Book Keeping position that would fit nicely into your day-to-day schedule.
Whether you get the job or not is irrelevant. What is relevant is that you understand that your ability to balance your cheque book and stick to a budget does not necessarily mean you would be a good corporate Book Keeper. However, without experience or formal training, having an aptitude for numbers and detail combined with a willingness to learn and be taught might be all that is needed for this new career to be within your reach.
One of the first things you will discover is that your thought process as to what has been a debit and a credit will be thrown out the window. Balancing your personal cheque book identifies the debits as money you take out of your bank account and credits are the cash or pay cheques you put into your account. In the corporate world, debits are the cheques being paid out and credits are the receivables being paid to the company.
The next hurdle may be the transition from the pencil and paper of your cheque book to a computer program used by the company that has hires you. Atlanta bookkeeping services
Since most people have the ability to work on computers using various forms of software, catching on to an accounting program should be a piece of cake. The icing for this piece of cake will come with an understanding of the Financial Statement. Basic knowledge is better than none when it comes to an Income Statement, sometimes known as a P & L or Profit and Loss Statement. In addition to this, comprehending what the Balance Sheet is and especially where the Assets, Liabilities, Revenue and Expenses belong is essential to keeping a set of books. In conjunction with this know-how, it is important to be aware that the Revenue and Expenses that appear on the Income Statement will eventually end up on the Balance Sheet along with the Account Payable, Account Receivable, Shareholder Loan and Retained Earnings.
Accounting software will spiral down to all of these areas and levels once the initial entry is made; however, it is in everyone’s best interest if you know how they got there and why. Old school Book Keepers that have the ability to post to and balance a complete set of books manually are a dying breed. They are however to be considered experts in their field as they have the tools to understand how the accounting world of a Book Keeper works without the dependency of modern technology. These people are often versed in accounting software as well, making them even more valuable.
Take the initiative to find a mentor who is willing to teach some of the old school systems to you. Through this, experience, you will gain some of their insight into a career that regardless of whether you keep track of the numbers with paper and pencil or using a software program, it is still Book Keeping.