Posted by Fletcher Accounting and Tax Service Inc.

Bookkeeping Services - What Are They?

Bookkeeping Services - What Are They?

You must have often heard the term bookkeeping. But what exactly is it? Have you thought about that? It is pretty simple though. Bookkeeping is the record and organization of the final transactions of any company. 

It is quite essential for a business, specially a growing one to maintain solid and professional accounting records. This is more important if you wish for your business to grow. 

Bookkeepers are responsible for maintaining the day to day records of the business. Apart from the day to day records, bookkeepers are also responsible of maintaining the financial transactions along with maintaining the confidential stuff of the business. It is their responsibility to ensure that no secrets of the company are leaked. 

Some services of bookkeeping

Bookkeepers ensure that they manage the business quite well and keep it organized. Bookkeeping is very important for all kinds of businesses whether big or small. Apart for businesses, bookkeepers are also beneficial for individuals as well as for non-profit organizations which also value the bookkeepers. 

Below we provide you with a list of tasks which are excluded from the list of tasks which normally the bookkeepers do. Bookkeepers will manage all kinds of records and transactions which are linked but not those which are limited to the following:

  • Invoices of customers payments
  • Loan payments
  • To generate the financial reports
  • Monitoring of asset depreciation
  • The expenses payments to the suppliers

Often we hear the term accounting with bookkeeping. However, they both are quite different. Accounting means the practice of managing the financials of an individual or a business while bookkeepers are more inclined towards recording the financial activities and their practices. 

What is the importance of book keeping?

It might not seem so important but bookkeeping is very important for all kinds of businesses and of all sizes. Initially, bookkeeping is quite simple and comfortable however it gets more complicated and hard. It gets more complicated when loans, investments, taxes and assets are introduced. 

The truest purpose of the bookkeepers is the tracking of business financial activities. Bookkeepers keep the latest records of the incoming and outgoing payments from a business. Apart from that, they also keep track of the money which the customers owe to the business and vice versa. 

Traditional bookkeeping

Bookkeepers and bookkeeping in a business is not a thing of today. It has a huge history. Initially, it involves accounts charts, double entry system and ledgers. Below we mention a few of the traditional practices of bookkeepers which are still used up to this day in almost all the businesses:

  • Recording the transactions

This is the rule and principle that all kinds of transactions must be recorded in the system. Every transaction must be stored by a document name which describes the transaction. 

These may consist of sales invoice, payment of supplier, invoices of supplier, journals, payments from banks and sales receipt. These are very important in maintain the records if an event which is related to audit comes up.

  • Double entry bookkeeping

This term means that every kind of entry and transaction consists of two parts. These transactions also cause effect on the lodger accounts. 

Every transaction which you make has a debit as well as credit. This can also cause an error. For instance, sometimes these errors may be reported that the amount of debit does not equal the amount of credit. This causes errors. 

Bookkeeping in today’s world

As industries grow and advance in technology, they surely are affected by many things. Bookkeeping involves no exception. If large businesses are not maintained properly and do not have proper bookkeepers, the business might not be organized well. Their accounts and other important information can be easily mishandled. 

It is time that the businesses say their goodbyes to ledgers and boring books. Bookkeepers are here to maintain the businesses and keep proper track of the day to day transactions of businesses. 

One of the main reasons that people find it really hard to find a good keeper is that there are many bad bookkeepers out there. In this field, even the tiniest of carelessness can cause huge problems and expensive effects. It is the ultimate responsibility of bookkeepers to handle all these responsibilities with utmost care and perfection. So, this was all there was about the bookkeepers!

Fletcher Accounting and Tax Service Inc.
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