Keeping accurate information, especially in terms of financial resources and data of firms and businesses is important. This complex work must be done, managed, and supervised by someone who had enough knowledge and understanding of finances, its principles, standards to follow, guidelines, and the process it involves. Bookkeeping is one of the useful accounting activities and works in your business that needs careful analysis and keen judgment. This article is all about what normally BOOKKEEPING FIRMS services provide and offer to their clients.
WHAT IS BOOKKEEPING?
Bookkeeping is the recording and tracking of financial transactions regularly. It also involves preparing financial statements, doing financial-related reports, and doing paper works like tax preparation, payroll, and other accounting-related activities. One must be careful enough in recording these transactions since there are transactions that are not related to the business. Bookkeepers need to maintain the accurate financial data recorded in the original book of entry which is called the journal for journalizing transactions and the second book which is called the ledger which is used for posting. These books must be kept confidential and must be error-free so that you will be able to prepare the financial statements correctly.
BOOKKEEPING SERVICESAUDIT AND ASSURANCE
Auditing is what BOOKKEEPING FIRMS usually provide to businesses. If you as the owner are unsure of how this process works, you need to hire a bookkeeper or an accountant who will do this work. This can be tough and complicated if you are not familiar with accounting concepts and principles. Having an audit is so significant to ensure that all financial resources are used or utilized well and that the right recording of financial transactions is correct. Overpricing is eliminated, and correct recording like how many outputs your business produced or how many sales you have can be easily monitored through an audit. The auditor maintains the accuracy, quality assurance, and transparent monitoring of the financial resources of the business.
TAXATION
Preparing for your business tax as well as making computations for your employee’s tax can be difficult. For you to focus on your business as an owner or if you have other roles and other responsibilities you need to work for, then availing these financial services from BOOKKEEPING FIRMS is so vital. Tax is the lifeblood of any country’s government and non-compliance with these tax reports and right tax documents can be punishable by law and paying for penalties is needed. Thus, to be stress-free with all these accounting-related tasks at work, ask for help from an expert who knows how this process works.
FINANCIAL STATEMENTS PREPARATION
Another important work to be done or made by the bookkeeper is to prepare the financial statements. Examples of these financial statements are income statements, statements of changes in owner’s equity, statements of financial position or balance sheets, and cash flow statements. Since this accounting work is a process, before they can prepare these statements, they need to get all this financial information from the accounting books they used in recording and posting. That’s why accurate journalizing and posting are a must for you to make these statements correctly as well.