One of the main features of bookkeeping is operating a general ledger. This is the primary record where bookkeepers maintain all their records, payments and receipts. Recording on the ledger is known as posting. So, the more times there’s a sale or expend, the more often the ledger will be posted.
In the past, ledgers were made with basic devices like a pen and paper. However, as technology and enterprises have grown, they’re now made with technical software that can be automated and tailored to your business to meet exact needs.
A bookkeeper has to supply correct, up to date financial data so that the accountants can schedule annual financial reports as well as tax returns for your company.
These accounting reports are used by you as a company owner as well as other stakeholders such as directors to help them make business decisions.
Let’s have a look at some of the primary as well as secondary bookkeeping services that a bookkeeper can deliver to your business:
Data entry is nothing but the process to record financial transactions, that is, keeping a record of what arrives in and what goes out of your company. It is the basis of bookkeeping and accounting services as accurate financial data is a must for preparing financial reports. This is because accurate financial records will allow you as a business owner and other stakeholders to get a true and fair view of how your company performs.
Bank reconciliation refers to the method of reaching the financial transactions in your books of accounts against the transactions mirrored in your bank statements. The intent after undertaking bank reconciliation is that the financial dealings recorded in your books of accounts must match with those reflected in bank statements. Bank reconciliation is essential for your business as it aids to find and rectify data entry errors or overlooked transactions.
A bookkeeper ensures that your consumers are invoiced and payments are collected from them on time. He ensures that bills are paid on time to dodge any delay in deliveries or holding back of supplier credit.
In addition to keeping accounts payable and accounts receivable, a bookkeeper also essays payroll services. This involves calculating employee salary, altering deductions, and providing that the net salaries are paid to the employees on the needed due date. Timely payment of salaries would guarantee that your workers are happy. Also, proper payroll is essential from the point of view of compliance.
Monthly Financial Reports:
There are different financial reports that a bookkeeper requires to make every month to track your business account. For more latest industry news read our latest articles.
One of the most critical decisions that you make as a business owner is to employ a bookkeeping service for your small business. There are numerous advantages of taking bookkeeping services: