Bookkeeping is an essential part of any business. It is essential because from it, a company owner can gather information on what the company is doing. Your small business owner is not exempted from keeping financial records of the company. She can get it done herself. She can hire a full time bookkeeper. Or in accordance practice, it’s possible to outsource it to an accounting firm that offers bookkeeping services.
Bank reconciliation is one of the bookkeeping services that an outsourced bookkeeper can perform in a small business. It is a file that explains the difference between the cash balance as per the bank’s monthly statement of account and the company’s cash balance as per its books at a specific date, usually the conclusion date of the statement of account. This really is an essential activity to check on for errors in posting in both bank and company’s records.
Trial balance sheets are also one of the bookkeeping services that the bookkeeper must perform. A trial balance is an accounting worksheet that’s used to check on for the mathematical correctness of the accounting balances. This document can help the company owner in decision making.
One of many bookkeeping services the bookkeeper is needed to render is the preparation of financial statements. These accounting statements are used only for internal decision making purposes. The business owner will find out in regards to the financial position of his/her business and its financial performance which may be beneficial for making economic business decisions. These financial statements are also helpful for other stakeholders of the business like its employees, its creditors, its suppliers, the federal government and even the general public. If these financial reports should be shared outside the company then the CPA needs to issue a written report on them. Because of this, it will be advisable to really have a licensed CPA firm handle your bookkeeping.
The maintenance of the general ledger can also be one of the bookkeeping services the bookkeeper must perform for the company owner. An over-all ledger is the heart of the company’s accounting records bookkeeping price packages. All raw data are recorded, classified and summarized into the general ledger and used as basis in the preparation of trial balance and financial statements.
Maintenance of Accounts Receivable and Accounts Payable must also be one of the bookkeeping services. Accounts Receivable is a listing of all unpaid transactions of the company’s customers while Accounts Payable is a listing of all unpaid transactions the business owes to different suppliers. It is essential that both accounts are updated because they involve cash.
Payroll processing can also be one of the bookkeeping services that the bookkeeper offers to his/her client. Payroll services must also include correct tax deductions and payment to other agencies. Computations of bonuses and other deductions are also part of this service.
In contracting an outsourced bookkeeper, your small business owner can bear in mind these tips: decide what bookkeeping services the business needs; search well for a bookkeeper nearby the location of the business; and have a selection list of all possible bookkeepers who are near the company location. You need to have a set of services they provide and the fees of every bookkeeper. A business owner should make a cautious evaluation prior to picking a bookkeeper because the ongoing future of the company are at stake.