Everyone involved in a business, from a department supervisor to the owner, should have at least a rudimentary knowledge of bookkeeping. Unless each one understands the basics of how income and expenses affect both the individual departments and the company as a whole, the entire business will suffer.
Each transaction a company makes must be recorded and it must be recorded properly. This includes sales or other income, purchases or expenses and payments of any kind. Bookkeeping courses teach the proper way to record these transactions.
In addition, general accounting principles must be learned. This is more than just learning the proper place to record a transaction. It involves ethics and procedures. It includes how and when to prepare the reports required by various governmental agencies.
A supervisor needs to understand how his department's expenses and productivity affect the cost of goods sold and, eventually, the profitability of the business. The higher the position in the company, the more knowledge the employee should have.
Even a small business owner who outsources the accounting needs to have the ability to examine and understand all of the financial statements. He needs to be able to decipher balance sheets, income statements and profit and loss sheets. If he lacks this knowledge, he won't be able to tell which activities are profitable or where the money is going. He will also need the ability to discuss those financial statements intelligently with investors and bankers to prove the creditworthiness and the stability of the business.
Most companies today use computer programs to do the labor that used to take a clerk many hours. This does not negate the need for knowledgeable personnel. If the person making the entries for accounts receivable or accounts payable or payroll into the computer doesn't have a working knowledge of bookkeeping, the owner will not get the accurate reports needed to make intelligent decisions about the business.
The best way for all of these people to acquire this knowledge is to take formal courses. This education will pay dividends in the years to come.
The classes can be as simple as one that explains to the layman the difference between a debit and a credit and what is meant by cost of goods sold. They can be as complex as those designed to provide professional certification to the more knowledgeable employees.
Every person who deals with any aspect of the company must learn the concepts of finance if the company is to prosper. The website http://www.bookkeepingcourseshelp.com/
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