Importance of Bookkeeping in the Mining Industry

Bookkeeping is something that is of immense importance to every sector in the business world there is. Whether it is the healthcare sector or the housing sector, bookkeeping is something that is needed everywhere. That said, there are different ways that a company can go about it. Some companies hire specialized bookkeepers from outside their company in order to handle their accounts, while other companies have a group of specialized bookkeepers within their companies and they handle their accounts in-house. Just like every other sector out there, bookkeeping is also of importance in the mining sector.

Why are bookkeepers needed in the mining industry?

Mining companies need to keep proper records of all the natural resources that they mine, such as coal, gas, oil, alternative fuels, etc. That is because these are things that are used by people worldwide. Several different strict requirements are often imposed on them, which makes the need for rigid bookkeeping even more important.

Failure to keep track of the resources and their yield can result in major fines and worse by the government. Mining companies are usually very careful about keeping track, as it is extremely important that they do.

Importance of Bookkeeping in the Mining Industry

In house versus outsourced bookkeeping

In house bookkeeping has both pros and cons just like outsourced bookkeeping does, but in many ways, outsourced bookkeeping may have lesser cons than in house bookkeeping does. Firstly an in house bookkeeper may or may not be a specialist. Chances are, they aren’t, and when a non-specialist handles bookkeeping responsibilities, there are chances that the bookkeeping records will be prone to errors.

These errors can be diminished by hiring a professional bookkeeper, in other words, by outsourcing the bookkeeping task. Additionally, outsourcing also improves the quality of the job, something that a company might not be able to achieve with in house bookkeepers.

However, it also depends on the size of the industry. For a small company, an in house bookkeeper may be a better option than outsourcing a professional bookkeeper. However, in the case of a mining company, which will no doubt, be much larger and will employ several hundred, or perhaps even a thousand, employees, outsourcing bookkeeping may be a better option. They are more efficient than in house bookkeepers, for instance. Also, since the outsourced bookkeeping company will take all the responsibility for any damage or theft, you also don’t need to worry about that.

There is a greater possibility of theft occurring in the cases of in house bookkeeping, as carelessness, or even corruption can easily lead to theft of precious data. On the other hand, outsourcing bookkeeping can also save the company money in the long run, as well as time, since there is a lesser probability of there being any errors, the government will not be able to fine the company for inaccuracies later on, something that is more likely to happen with in house bookkeeping.

If you want to learn more about the differences between in house and outsourced bookkeeping, check out http://visual.ly/outsourced-bookkeeping-vs-house-bookkeeping