Running a business without keeping a daily record of cash inflows and outflows is nigh impossible. Fortunately computerisation has eased up this administrative burden tremendously. Things to consider when planning your day-to-day accounting are:
Do you appoint an internal staff member to fullfil this function?
Do you appoint an external bookkeeper and if so do they come into your premises from time to time or do they do your processing at their own premises?
Even if you do appoint internal staff - do you need an outside professional to come in and set up all your systems? To train your internal staff?
Many businesses opt for a combination - an internal admin. person to do the data-capturing (as well as their other non-accounting duties) and an external accountant/bookkeeper to come in once a week or month to check and tie things up. See also "Monthly Management Accounts" in this regard.
A bookkeeper (or book-keeper), also known as an accounting clerk or accounting technician, is a person who records the day-to-day financial transactions of an organization. A bookkeeper is usually responsible for writing up the "daybooks." The daybooks consist of purchase, sales, receipts and payments. The bookkeeper is responsible for ensuring all transactions are recorded in the correct daybook, suppliers ledger, customer ledger and general ledger. The bookkeeper brings the books to the trial balance stage. An accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper."
