Bookkeeping is an important section of any business. It is important because from it, a small business owner can gather information how 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, you can outsource it to an accounting firm that offers bookkeeping services.
Bank reconciliation is one of many bookkeeping services an outsourced bookkeeper can perform in a small business. It’s a record that explains the difference between the cash balance according to the bank’s monthly statement of account and the company’s cash balance according to its books at a particular date, usually the end date of the statement of account. This really is an important activity to check on for errors in posting in both bank and company’s records.
Trial balance sheets will also be one of many 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 the bookkeeping services the bookkeeper is required to render is the preparation of financial statements. These accounting statements are used limited to internal decision making purposes. The business owner will find out about the financial position of his/her business and its financial performance which may be beneficial in making economic business decisions monthly bookkeeping packages. These financial statements will also be ideal for other stakeholders of the business like its employees, its creditors, its suppliers, the federal government and even the overall public. If these financial reports should be shared outside the company then a CPA needs to issue a written report on them. For this reason, it would be advisable to have a licensed CPA firm handle your bookkeeping.
The maintenance of the overall ledger can also be one of many bookkeeping services the bookkeeper must perform for the company owner. An over-all ledger is the heart of the company’s accounting records. All raw data are recorded, classified and summarized into the overall 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 many bookkeeping services. Accounts Receivable is just a listing of all unpaid transactions of the company’s customers while Accounts Payable is just a listing of all unpaid transactions the business owes to different suppliers. It is important that both accounts are updated because they involve cash.
Payroll processing can also be one of many bookkeeping services that a 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 will also be part of this service.
In contracting an outsourced bookkeeper, your small business owner can remember the following tips: decide what bookkeeping services the business needs; search for a bookkeeper near the located area of the business; and have a selection list of all possible bookkeepers who are near the company location. One should have a listing of services they give and the fees of each bookkeeper. A business owner should make a careful evaluation ahead of picking a bookkeeper because the future of the company reaches stake.