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Most people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers.

Bookkeepers perform all manner of record-keeping tasks. Some of them include the following:

-They prepare what are referred to as source documents for all the operations of a business – the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production.

-Bookkeepers also make entries of the financial effects into journals and accounts. These are two different things. A journal is the record of transactions in chronological order. An accounts is a separate record, or page for each asset and each liability. One transaction can affect several accounts.

-Bookkeepers prepare reports at the end of specific period of time, such as daily, weekly, monthly, quarterly or annually. To do this, all the accounts need to be up to date. Inventory records must be updated and the reports checked and double-checked to ensure that they’re as error-free as possible.

-The bookkeepers also compile complete listings of all accounts. This is called the adjusted trial balance. While a small business may have a hundred or so accounts, very large businesses can have more than 10,000 accounts.

-The final step is for the bookkeeper to close the books, which means bringing all the bookkeeping for a fiscal year to a close and summarized.

Personal loans and all the terminology that goes with it can make your head spin after awhile. However, it is very important to educate yourself with the ins and outs of personal loans if you are considering obtaining one for any financial reason. Doing so can help ensure you get the right loan for your needs as well as prevent heartbreak down the road for you.

There are many wonderful books on the market today offering information on personal loans. Several of these books are a great investment for ensuring you will make solid financial choices in the area of personal loans after arming yourself with the facts of the industry.

The “Beginners Guide to Real Estate Investing” by Gary W. Eldred is of course geared towards real estate. However, it does have excellent information regarding personal loans. If you are considering a personal loan for real estate related issues including fixing up homes, then this book will give you quality information in both areas.

“The Book of Inside Information” explains the world of personal loans in very simple terms, making the process much easier to understand than books full of industry jargon. This book is a great financial resource. In addition to providing you will information about personal loans, it discusses the areas of family finances and managing family spending. One of the newest books out there is “The 21st Century Family Legal Guide:  The Law You Must Know to Protect Yourself and Your Family”. This book is more technical, but still offers excellent information regarding personal loans.

In addition to quality books offering you information about personal loans, there are a few that provide you information on how to pay off debt, including credit cards and personal loans. “Live Debt Free” (3rd Edition) is full of level headed advice for doing so. This isn’t a book that promotes pyramid schemes or get rich quick schemes. Instead, the book offers forward budgeting and money management tips to help individuals devise a realistic plan that fits their income. The plan will help individuals reduce their debt in the areas of credit cards and personal loans.

Quality magazines including Reader’s Digest and Money Today often run articles on types of loans. You can research the internet to find great articles from these magazine and many others that discuss personal loans. Don’t forget to look for reviews including those published by the National Consumer Council on the issue of personal loans.

Personal loans are a great financial tool when used properly. Take the time to read some quality books in the area of personal loans to establish a strong understanding of how the process works. To get the best results, choose books that are unbiased. You want to read the good, the bad, and the ugly about personal loans. The more you know, the better decisions you can make regarding your financial dealings with personal loans.

If you already have personal loans, consider reading books that provide excellent information for ensuring those loans are repaid as well as how to eliminate personal loan debt with effective debt management systems. The information is very straightforward and worth investing your time and energy into reading. The internet is a great place to search out such important books on the issue of personal loans. You can also ask for them at your local library.

So what goes on the accounting and bookkeeping departments? What do these people do on a daily basis?

Well, one thing they do that’s terribly important to everyone working there is Payroll. All the salaries and taxes earned and paid by every employee every pay period have to be recorded. The payroll department has to ensure that the appropriate federal, state and local taxes are being deducted. The pay stub attached to your paycheck records these taxes. They usually include income tax, social security taxes pous employment taxes that have to be paid to federal and state government. Other deductions include personal ones, such as for retirement, vacation, sick pay or medical benefits.  It’s a critical function. Some companies have their own payroll departments; others outsource it to specialists.

The accounting department receives and records any payments or cash received from customers or clients of the business or service. The accounting department has to make sure that the money is sourced accurately and deposited in the appropriate accounts. They also manage where the money goes; how much of it is kept on-hand for areas such as payroll, or how much of it goes out to pay what the company owes its banks, vendors and other obligations. Some should also be invested.

The other side of the receivables business is the payables area, or cash disbursements. A company writes a lot of checks during the course of year to pay for purchases, supplies, salaries, taxes, loans and services. The accounting department prepares all these checks and records to whom they were disbursed, how much and for what. Accounting departments also keep track of purchase orders placed for inventory, such as products that will be sold to customers or clients. They also keep track of assets such as a business’s property and equipment. This can include the office building, furniture, computers, even the smallest items such as pencils and pens.