About Accounting And Bookkeeping
This online services on Accounting and Bookeeping is design to provide you and your business a untroubleadministrative support and data entry, such as maintaining financial records. A key part of the business and enterprenuershipis accounting process and bookkeeping which requires a highly organized professional to accurately track and record financial transactions like sales and expenses. These services are designed in a way to offer the necessary attention to detail and expertise to your finances which will take your business to a next height.
Service Covered
Bookkeeping: Recording financial transactions, classifying them into appropriate accounts, and maintaining accurate and up-to-date financial records.
Financial Statement Preparation: Compiling and preparing financial statements, including the income statement, balance sheet, and cash flow statement, to summarize the financial performance and position of a business.
Payroll Processing: Calculating employee wages, salaries, taxes, and benefits, and issuing paychecks or direct deposits. This may also include payroll tax reporting and compliance
Difference Between Accounting And Bookkeeping
Accounting and bookkeeping services can be handled by one individual but before you make any decisions, find out what is the difference between accounting and bookkeeping
How It’s Done
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S.No
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ACCOUNTING
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BOOKKEEPING
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Meaning
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Accounting refers to the process of summarising, interpreting and communicating the financial data of an organisation.
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PURPOSE
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to maintain a systematic record of financial activities and transactions chronologically.
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to report the financial strength and obtain the results of the operating activity of a business.
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OBJECTIVE
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to interpret and analyse financial information for informed decisions.
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to summarise the effect of all financial transactions of a business for a given period.
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FINANCIAL STATEMENT
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The financial reports and statements are prepared under the accounting process
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The financial statements are not a part of the bookkeeping process.
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Bookkeeping involves the day-to-day recording of financial transactions, including sales, purchases, receipts, and payments. This process typically includes:
Recording Transactions: The core of bookkeeping involves recording all financial transactions that occur within the business. This includes sales, purchases, receipts, and payments. Each transaction is entered into the appropriate accounting records, such as journals or ledgers.
Classifying Transactions: Once transactions are recorded, they need to be classified into relevant accounts. This involves categorizing transactions based on their nature (e.g., sales revenue, cost of goods sold, rent expense, utilities expense, etc.). Proper classification ensures that financial statements accurately reflect the business’s financial performance and position.
Double-Entry Bookkeeping: Bookkeeping follows the principle of double-entry bookkeeping, which means that every transaction affects at least two accounts. For example, a sale would increase the sales revenue account and also increase the accounts receivable or cash account.
Documents Required
Invoices: Invoices are documents issued by a seller to a buyer, detailing the products or services provided, quantities, prices, terms of sale, and payment due dates.
Receipts: Receipts are proof of payment received and are issued by the seller to the buyer upon receiving payment. They can also be generated by the buyer for expenses paid.
Purchase Orders: Purchase orders are documents issued by a buyer to a seller, specifying the products or services to be purchased, quantities, prices, terms, and delivery dates.
Sales Orders: Sales orders are documents received by a seller from a buyer, indicating the products or services requested, quantities, prices, terms, and delivery instructions.
Bank Statements: Bank statements provided by financial institutions contain records of transactions, including deposits, withdrawals, transfers, and bank charges.
Payroll Records: Payroll records include details of employee compensation, such as wages, salaries, bonuses, commissions, deductions, and benefits.
Expense Reports: Expense reports document business-related expenses incurred by employees and include receipts for reimbursement purposes.
Credit Card Statements: Credit card statements provide records of transactions made using credit cards, including purchases, payments, interest charges, and fees.
Who Is Required to Buy This Service
Any business, regardless of its size or industry, can benefit from outsourcing accounting and bookkeeping services.
However, it is particularly essential for:
Small and Medium-Sized Enterprises (SMEs): SMEs often lack the resources to hire in-house accounting staff and can benefit significantly from outsourcing.
Startups: Startups can focus on growth and innovation while leaving the financial tasks to professionals.