There are various transactions that are carried out as businesses are run comprising of sales, purchases, and receipts among others. Small business bookkeeping services involved the keeping of financial records usually done by the accounting department. Usually, there exists several methods of maintaining the said records for instance, double and single accounting system of entry. The criteria of choosing the method to use depends on the type of business, size of transactions and the frequency of keeping records.
These services are performed by a bookkeeper who is also referred to as an accounting technician or else an accounts clerk. They play the role of maintaining daily commercial transactions of the enterprise. These could include purchasing of stock, sale of items, creditors, debtors and also payments made such as water and electricity bills, just to mention a few. This accounting technician should ensure that the entries made are correct and made in the appropriate book.
The variation between the two commonly used recording structures lies in the design and content. In using the single system one should not include records of liabilities and capital and is thus preferred when taking down of daily cash disbursements, for instance the Cash Book. On the other hand in the double one, one is required to include the liabilities and equity and is used for purposes of long term analysis of transactions made with a good example being the Balance Sheet.
The importance of such services in businesses include, better planning, precision in fulfilment of tax obligations, sourcing for investors and more often than not is a requirement by law for auditing purposes among others. The implications of not having an efficient system are delayed payments to suppliers, difficulty in noticing inconsistencies day to day handling, slow growth of the enterprise and higher tax penalties. For small enterprises that are extremely unstable record taking is vital for growth and future projection.
Bookkeeping largely accounts for the profitable effects of enterprise cash dealings or transactions. The manual and electronic accounting techniques contrasts in the prospective of recording of cash deals and appointment in the correct account. The electronic is system is instantaneous while the manual is largely characterized by delays.
When a small organization has a good accountant, he/she make certain that proper records are being kept in order to avoid any examples of errors. This help in ensuring that this business grows in an efficient as well as effective manner. Nevertheless, due to the size of the business, a business owner may make the decision of keeping and maintaining records on his own. In such a case, it is recommended that he have basic knowledge of accounting.
Furtherance, the owner who does the accounting on his own requires to have records of all receipts be it cash or the purchases, and the invoices involving the expenses of the particular organization. These include bills such as electricity and water, bank statements and credit card, among others. In case the business have employees, the manager ought to keep the records on payroll.
In conclusion, the accountant should compute a trial balance consisting of incomes and expenses. Balance sheet as well as income statements are also prepared using the data and information from the trial balance. Whichever the method used record keeping is essential.
These services are performed by a bookkeeper who is also referred to as an accounting technician or else an accounts clerk. They play the role of maintaining daily commercial transactions of the enterprise. These could include purchasing of stock, sale of items, creditors, debtors and also payments made such as water and electricity bills, just to mention a few. This accounting technician should ensure that the entries made are correct and made in the appropriate book.
The variation between the two commonly used recording structures lies in the design and content. In using the single system one should not include records of liabilities and capital and is thus preferred when taking down of daily cash disbursements, for instance the Cash Book. On the other hand in the double one, one is required to include the liabilities and equity and is used for purposes of long term analysis of transactions made with a good example being the Balance Sheet.
The importance of such services in businesses include, better planning, precision in fulfilment of tax obligations, sourcing for investors and more often than not is a requirement by law for auditing purposes among others. The implications of not having an efficient system are delayed payments to suppliers, difficulty in noticing inconsistencies day to day handling, slow growth of the enterprise and higher tax penalties. For small enterprises that are extremely unstable record taking is vital for growth and future projection.
Bookkeeping largely accounts for the profitable effects of enterprise cash dealings or transactions. The manual and electronic accounting techniques contrasts in the prospective of recording of cash deals and appointment in the correct account. The electronic is system is instantaneous while the manual is largely characterized by delays.
When a small organization has a good accountant, he/she make certain that proper records are being kept in order to avoid any examples of errors. This help in ensuring that this business grows in an efficient as well as effective manner. Nevertheless, due to the size of the business, a business owner may make the decision of keeping and maintaining records on his own. In such a case, it is recommended that he have basic knowledge of accounting.
Furtherance, the owner who does the accounting on his own requires to have records of all receipts be it cash or the purchases, and the invoices involving the expenses of the particular organization. These include bills such as electricity and water, bank statements and credit card, among others. In case the business have employees, the manager ought to keep the records on payroll.
In conclusion, the accountant should compute a trial balance consisting of incomes and expenses. Balance sheet as well as income statements are also prepared using the data and information from the trial balance. Whichever the method used record keeping is essential.
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