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.
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 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.
- Those who did not know about accounts they treated Both bookkeepers and account same.
- You have the basic knowledge for that of accounts.
- Bookkeeper maintains transaction by recording.
- They may be used software for recording transaction.
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 sheet.
- Completing payroll
- Owner and produces maintain accounts
- Preparing all the expenses that have to be done but it 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
- Time Effective
- Higher Profits
- Reduced Tax Liabilities
- Peace of Mind
- The procedure of Book-keeping Service
- Send your accounts books
Analysis of your books
Verification and Approval by you
- The next step is verification as the accounts verified by our expert, they send to you and wait for your approval. It will take time of maximum 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 send to you. And at final Congratulations for bookkeeping.
Book-keeping plays an important role in our business because it shows all financial statement that we expect. Hire bookkeeper as soon as possible because it reduced our efforts & mistakes. Bookkeeper maintains your accounts as little. And maintain in 3 hours.
For payments and all other things like advance to the merchants and sign cheque the owner has the authority and control over that.
FilingBuzz is best bookkeeping service provider at very low cost. Our companys network spread is in all over India for all legal corporate service as bookkeeping one of them.
Yes book-keeping is mandatory for any business and for any business it should be separate that is every business has its separate book for maintenance of accounts.
Every Companies and LLPs are required to maintain books of accounts as per Companies Act, 2013 and Limited Liability Partnership Act, 2008. Further, Income Tax Act, 1961 also obligates the maintenance of the books of accounts, irrespective of the form of business, and has separate provisions related to it.