Bookkeeping Services are becoming very relevant for Business
What is bookkeeping?
It refers to the process by which financial transactions are being recorded, analyzed and also interpreted. A person entitled with this duty makes sure that financial statements are being setup properly so that an accountant easily performs legal as well as tax related matters according to their schedule. A person who is skilled provides accurate information regarding financial activities when it matters the most. These records if well preserved are quite critical for future successes of business groups. These records come in handy not only during business transactions but also during law managements.
Financial transactions involved in bookkeeping
Following are the steps to involve financial transactions in bookkeeping
- Keeping proper receipts, during transaction from customers.
- Regularly verifying invoices as well as recordings from different suppliers.
- Paying suppliers properly and taking good care on the bills regarding goods sold to other clients.
- Keeping records of employee’s payment and other governmental reports.
- Having records of depreciations and adjusting other entries.
Signs of a Good contract bookkeeper
The signs are as follows:
- They should setup software’s properly along with improved accounting system.
- They should be equipped to perform reconciliations, end year processes as well as checks.
- They should ensure proper management reports as well as utilize legislative requirements to the ultimate level.
- Business Activity Systems (BAS) should be prepared by them for returns under one registered BAS agent’s supervision.
- Besides these they should also be well equipped to provide administrative as well as business support.
How is quick bookkeeping software useful?
QuickBooks is great software provided by Intuit for business accountings. It is easy to use and organizes finances as well as different reports in one single place. This software provides a range of features like QuickBooks payroll which helps in paying checks to employees. QuickBooks Merchant Services is useful while accepting credit card payments from customers besides having a range of other business products in it.
There are two types of Entry Systems
- Single-entry System refers to the process of recording data in single entry cashbook. Income and various expenses relating to income and expenditure accounts and many more. This type of system uses only accounts that belong to only income and expenses which are recorded primarily in different journals. Many small business groups use single entry system. For small amount of cash separate account records are used along with travel expenses. DIY system software speeds up this process manually nowadays.
- Double-entry System records financial information for financial account systems. Every transactions transaction changes nominal ledger accounts at least twice.
Uses of bookkeeper
- Helps in preparing financial statements which also involves BAS.
- They make sure that records are accurate and up-to-date.
- During tax payment and end year financial records are sorted by bookkeepers. This helps in tracking down company’s deductions, hence prevents employees from paying extra tax.
- Helps to determine if business in profitable and helps in accessing if selling an item improves company’s ground or not.
- Helps to allot separate time for hiring new staffs.
