All About Bookkeeping Services
The word accounting covers a lot of different services. Accounting is simply defined as production of business’ financial records and principles of accounting are applied to finance, accounting, auditing and bookkeeping. Accounting first used in Mesopotamia to which people make use of various accounting methods in order to record the growth of their herds and crops. Then a thousand of years later, it has evolved to a more complex and sophisticated system that we know today to meet the needs of governments, financial institutions and businesses.
So what makes accounting as well as bookkeeping different services even though both of these two are concerned in dealing with the finances of the company? On the other hand, that is where their similarities end because bookkeepers are providing the foundation to create good audit trail of the daily financial operations that the company has.
As for the activities it can basically be anything from recording daily financial transactions of a business, setting up sound financial filing system based on the set standards of a single or double entry bookkeeping, assist in building solid financial team for the business from accountants, payroll preparation firms etc., categorization for preparation and reviewing data to hand over to the accountant or accounting department of the business, providing the business owner cost and cash flow information which helps them support and grow the business, recording daily financial transactions of a business, and reconciling cash accounts and bringing ledges to trial balance stage.
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What the accountants will do is take the info that bookkeepers have provided them. And by the time when they have the info they need, they’ll proceed in creating reports and do analysis of it to help the business get financing, plan for the future, put a value on their business and prepare for tax the tax reporting. The phrase accountant is actually a French word “compter” meaning to score or count.
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Accountants are also helping business owners in making decisions of what sort of company they want to create from corporation, LLC, partnership, sole proprietorship and the likes. Tax preparation, forensic accounting, cost accountants and business valuation are other branches of accounting services that are required by the business to manage finances properly.
For a number of small business owners, the utilization of bookkeeping service regularly is a vital part of their success. In the long run, this will mean to have strong foundation and save money as well. These days, there are many businesses that have opted to do bookkeeping on their own using software or spreadsheet system. Well, there’s actually nothing wrong in this one so long as proper training is provided to have basic understanding of bookkeeping and the function of the software.