Bookkeeping services are necessary for all businesses to ensure accurate operational and financial information. Such information is required by Management, Regulators, and Investors. Also, it is a legal requirement for any business to maintain an appropriate book of accounts to ensure that all relevant taxes are paid and tax filings are made on time.
As we know, Bookkeeping involves the recording of financial transactions such as amounts, dates, and other information of business like revenue, expense, gain, and loss transactions related to business on a day-to-day basis. It is used for all types of businesses to ensure the accuracy of finance and the integrity of transactions; such information is mandatory to be managed by Management, Regulators, and Investors.
Accuracy is the most important part of the Bookkeeping process, and bookkeeping is also the most important starting point of the accounting process. Having an accurate financial record is the most important part of the bookkeeping process that helps managers and business owners answer such important questions as, Is the business making money or losing it? How much? Is the business on sound financial ground, or are troubling trends in cash flow pointing to instability of some kind? A sound bookkeeping system is a foundation for gathering the information necessary to answer these questions.
Accounting & Bookkeeping Services also involves keeping track of business financial transactions and making entries to specific accounts using the debit and credit system. Each entry represents a different business transaction. Every accounting system has an accounting chart that lists actual accounts as well as account categories. There is usually at least one account for every item on a company’s balance sheet and income statement. In theory, there is no limit to the number of accounts that can be created, although the total number of accounts is usually determined by management’s need for information.
The process of bookkeeping involves four basic steps
- Analyzing financial transactions and assigning them to specific accounts
- Writing original journal entries that credit and debit the appropriate accounts
- Posting entries to ledger accounts
- Adjusting entries at the end of each accounting period. Bookkeeping is based on two basic principles. One is that every debit must have equal credit. The second, that all accounts must balance, follows from the first.
Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. There are several standard methods of bookkeeping, such as the single-entry bookkeeping system and the double-entry bookkeeping system, but while they may be thought of as “real” bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.
Bookkeeping services are mandatory Also, it helps in paying taxes and other legal procedures. Bookkeeping is the process of recording financial transactions of a business in an accounting system and the creation of reports. However, many small businesses do not have complete accounting departments and require external bookkeeping services. Bookkeeping depends on the maintenance of general ledger .it maintains records of the amounts of sale and purchases. A ledger can be created with specialized software, a computer spreadsheet, or simply a lined sheet of paper.
The complexity of business depends on the size of the business. And it maintains it on a daily, weekly, and monthly basis. It maintains all the transactions of sales and expenses. And need to be supporting documents.
Accountants may handle more advanced tasks like tax preparation, budget analysis, and investment development. Both Accountants and bookkeepers frequently use advanced financial software to record and track their information.
Bookkeeping is responsible for the recording of financial transactions. Accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing financial data.
Similarities
- Those who did not know about accounts treated both bookkeepers and accounts the same.
- You have the basic knowledge for that of accounts.
- Bookkeeper maintains transactions by recording.
- They may use software for recording transactions.
The function of bookkeeping
Bookkeeping is the process of recording daily transactions in a consistent way and is a key to analyzing company growth.
Bookkeeping is comprised of
- Maintaining all financial transaction.
- Posting debits and credits
- Produce an invoice.
- Maintain general accounts, ledgers and balance sheets.
- Completing payroll
- Owner and produces maintain accounts
- Preparing all the expenses that have to be done is not mandatory to maintain in bookkeeping.
- Preparing company financial statements
- Analyses of the cost of operations.
- Completing income tax returns
- Aiding the business owner in understanding the impact of financial decisions
Accounting provides reports that show key financial indicators like understanding of actual profitability and awareness of cash flow in the business. Accounting turns the information that reveals the picture of the business and growth of the company. Business owners will often look to accountants for help with strategic tax planning, financial forecasting, and tax filing.
Advantages of Bookkeeping
- Cost-Effective
- Time Effective
- Higher Profits
- Reduced Tax Liabilities
- Peace of Mind
- The procedure of bookkeeping Service
- Send your accounts books
For bookkeeping services, the company just have to submit their accounts books for further processing.
Analysis of your books
As we get your accounts books. Our experts bookkeeper will analyze the book of accounts. And it will take time of 02-07 working days.
Verification and Approval by you
- The next step is verification, as the accounts verified by our expert are sent to you and wait for your approval. It will take a maximum of 2–3 working days.
- Prepare balance sheet
- Once the accounts book approved by you. Our expert prepares the balance sheet and P&L statement. And it will take time of 4-5 working days.
Competition of accounts
Once the balance sheet and P&L are prepared, the books of accounts are finalized and completed, and then it is sent to you. And at final, congratulations for bookkeeping.
