All About Bookkeeping Services
The word accounting covers a lot of different services. Accounting is defined as production of the business’ financial records and principles of accounting are applied to finance, accounting, auditing and bookkeeping. It was in Mesopotamia where Accounting originated in which people use accounting methods in an effort 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? That is exactly where these 2 end their similarities because bookkeepers serve the foundation in creating good audit trail of the daily financial operations that the company has.
These said activities can be anything from setting up sound financial filing system based on the set standards of a single or double entry bookkeeping, recording daily financial transactions of a business, reconciling cash accounts and bringing ledges to trial balance stage, categorization for preparation and reviewing data to hand over to the accountant or accounting department of the business, assist in building solid financial team for the business from accountants, payroll preparation firms etc. and providing the business owner cost and cash flow information which helps them support and grow the business.
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Accountants are taking the information that the 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 term accountant has come from 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 small business owners, making use of a bookkeeping service regularly is an integral step for their success. In the long run, this will mean to have strong foundation and save money as well. There are a number of businesses these days that have opted to do bookkeeping on their own by using a software or spreadsheet system. As a matter of fact, this is totally fine as long as proper training is provided to have basic understanding of bookkeeping and the function of the system.