Book-keeping services are mandatory for all businesses to ensure accuracy of finance and ensure the integrity of transaction, such information is mandatory to mange by Management, Regulators, and Investors. 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 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.
Complexity of business depends on the size of business. And it maintain on 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.
The Similarities
- Those who did not know about accounts they treated Both book keepers and account same .
- You have basic knowledge for that of accounts.
- Book keeper 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 of analyze company growth.
Bookkeeping is comprised of:
• Maintaining all financial transaction.
• Posting debits and credits
• Produce invoice.
• Maintain general accounts, ledgers and balance sheet.
• Completing payroll
• Owner and produces maintain accounts
• Preparing all the expenses that has to be done but its not mandatory to maintain in book keeping.
• Preparing company financial statements
• Analyses of 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 an 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 Book-keeping
- Cost-Effective
- Time Effective
- Higher Profits
- Reduced Tax Liabilities
- Peace of Mind
Procedure of Book-keeping Service
For book keeping services, the company has to submit their accounts books for further process.
As we get your accounts books. Our experts 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 verify by our expert, they send to you and wait for your approval. It will take time of 2-3 working days.
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.
Once the Balance sheet and P&L are prepared, the books of accounts are finalized and completed and sent to you.
Congratulations for book keeping.