For every business organization, bookkeeping and accounting are two extremely important functions. Bookkeeping service is responsible for recording financial transactions, while accounting is responsible for interpreting, classification, analysis, reporting, and summary of financial data. Bookkeeping and accounting may tend to be the same discipline because both deals in financial records but both of these approaches are inherently distinct and have their different range of benefits.
To understand what are the accounting and bookkeeping services, we will discuss both aspects separately below.
Bookkeeping is a technique of keeping track of a company’s financial statements and keeping records of them. Bookkeepers are expected to periodically summarize the company’s operations in the financial record book. This financial record of the company helps in representing its annual performance. These reports also help the owners and other stakeholders to make business decisions.
Here are some bookkeeping services for small business are discussed below, which will emphasize the importance of this service for the business.
Entry of Data
Data Entry is the process of recording the financial information of all the business transactions. Data entry is the backbone of this process of bookkeeping. One wrong entry can change the whole report, so accurate data entry is the key to prepare and interpret financial reports.
In a bank reconciliation statement, you compare transactions recorded in business books of accounts and against your bank statements. This is a kind of auditing service in which accountants check the authenticity of reports. This will verify that the transactions recorded in the company’s books match with the bank statements.
Debtors, Creditors, and Payroll
Bookkeeping services make sure that all the clients are invoiced and received their payments on time. In addition to this, he ensures all the due bills are paid. Timely payments of bills result in timely deliveries. The bookkeeper manages to avoid the credit of suppliers. He does not only manage debtors and creditors but undertaking payroll services is also his job. Timely payment of salaries will make sure the workers are satisfied.
Periodic Financial Reports
Bookkeepers prepare different accounting statements monthly to keep track of business performance. These statements include P & L statement, balance sheet, account receivable, accounts payable, and cash flow statement. These reports act as an indicator for the business and show in which direction the business is going.
Accounting is the mechanism by which financial transactions are classified in the ledger accounts, summarized, and interpreted. The purpose of accounting is to evaluate the financial situation and supply the relevant authority with more detail.
For both small and big corporations, accounting services are vital. The services help keep the corporations’ work on track concerning different payments, financial progress, bookkeeping, and company expenses. Besides this, accounting experts advise small start-ups on the right investment and the appropriate framework for their company to ensure financial stability. There are four basic accounting services: public accounting, Government accounting, Management accounting, and Internal auditing.
Following are some accounting services discussed below.
Bookkeeping is the main part of accounting services for small businesses. This service includes maintaining a list of the company’s financial statements. Through recording a hard copy of financial records, the bookkeeper maintains business transactions or utilizes financial accounting software on the network.
Dealing with all the tax matters of the business is another accounting service. Giving the best tax advice to reduce the business’s tax expenditure is the duty of an accountant. The service provider is also responsible for filing the tax returns on time.
Chartered accounting service
An accounting service provider deals with all the details, from auditing the accounts to managerial operations. These chartered accountants usually work as in-house members of the company s financial management.
Accounting service records the financial transactions and debtors/creditors’ information, but it also helps find out the missing funds present on the reports.
Assignment of tasks to the workers, overseeing the work of staff, managing new clients of the business, and maintain the efficiency of work is also done by these service providers.
Furthermore, auditing management of accounts payable and receivable, preparation of bank reconciliation statements, and payroll processing all come under the umbrella of accounting services. Accounting and bookkeeping service providers are the saviours for small and medium businesses, and 101Accountant is the one who provides all these services to small businesses. We help small businesses to increase their profits and decrease their expenses.