Bookkeeping services are necessary for all businesses to ensure accurate operational/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 the types of businesses to ensure the accuracy of finance and ensure the integrity of transaction, such information is mandatory to manage by Management, Regulators, and Investors.
Accuracy is the most important part of the Bookkeeping Process and also bookkeeping is the most important starting point of the accounting process. Having an accurate financial record has the most important part of the bookkeeping process that helps managers and business owners answer such important questions like- Is the business making money, or losing it? How much? Is the business on the 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 companys 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 need for information.
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 maintain the records of the amounts of sale and purchase. 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 on a daily basis, weekly and monthly basis. It maintains all the transaction of sale and expenses. And need to be supporting docs.
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.
Bookkeeping is the process of recording daily transactions in a consistent way and is a key to analyzing company growth.
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.
Once the Balance sheet and P & L are prepared, the books of accounts are finalized and completed and then it send to you. And at final Congratulations for bookkeeping.