Bookkeeping – the record of day-to-day financial transactions such as sales, purchases, income, and payments by an individual or an organization. These records need to be produced at the end of every financial year. From small to medium to large business, maintaining financial records is a mush which therefore necessitates bookkeeping process.

The choice of preparing and producing the accounts: organization basically has three options: one is to prepare and maintain records manually; the next can be to employ the bookkeeping services and the last option is to use a bookkeeping software system. Each has its own advantages and disadvantages. Whatever may be the employed method, the ultimate thing is to produce accurate accounting information needed on time.

As the recorded financial transaction is very important for financial decisions and knowledge over the business performance, efficiency, and accuracy over the recorded transactions becomes the major concern. Further, the accounting information is the accumulation of documents such as sales invoices, purchase invoices, and possibly bank records during the financial year and after the end of the financial year for tax purposes.

Improper records of the above said data (as financial records) leads to unwanted penalties, simply administrative burdens. In analyzing the choices: keeping and maintaining manually may lead to data loss, inaccuracies, fines, and penalties thus leading to severe issues at the end of the financial year.

Manual bookkeeping needs regular and periodic evaluation of the data. In going for the choice of having a bookkeeper, trust and knowledge over the operation become the mandatory thing for any organization. Also periodic and regular tracking of the works and records maintained is necessary. Having a bookkeeper is also partially includes in manual work where accuracy level still depends on the knowledge of the bookkeeper.

The third choice of installing bookkeeping software also has few disadvantages. But these are overruled by its wide advantages. The major advantage is the reduction in paperwork and 90% of reducing the manual work thereby achieving accuracy and efficiency. By having bookkeeping software, no one other than the business owners and the authorized person knows the financial status which can be called the security over the accounts.

So by having the gist in hand, the advantages and disadvantages over the choices can be analyzed as discussed above. It can be said with proof that accounting software provides better financial control and performance over the others: manual bookkeeping and having a bookkeeper. Thereby administrative burden can be reduced and the organization can focus on its core activities.