Book keeping refers to the recording of financial transactions i.e. purchases, sales, receipts, and payments by an individual person or an organization/corporation, and is a part of the process of book keeping accounting for small and medium scale businesses. ln India we follow the double entry book keeping system. Therefore, any process for recording financial transactions is a book keeping process.
It is very crucial for businesses to keep all their books of accounts up to date. Businesses require bookkeeper/accountants who records the day-to-day financial transactions of a business. The day to day maintenance of the books, ledgers and registers which contain sales records, purchases, payments and receipts, and the documentation of each and every financial transaction whether on cash or credit into the correct daybook, ledger, register i.e. petty cash book, stock, suppliers ledger, customer ledger, etc and also the general ledger. Thereafter, a chartered accountant can use the data i.e. trial balance to create financial reports i.e. profit and loss statement, balance sheet from the information recorded by the bookkeeper/ accountant.
Related Blog: Coronavirus –Due Dates Extension
Nowadays small and medium businesses are opting for cost-effective modes of doing business wherein more and more businesses are outsourcing their Bookkeeping Services and availing Ca services as they provide professional guidance, timely updates all at competitive prices. This results in a win-win situation for small business book keeping.
- Dedicated Book keeper
- Compliant with the latest accounting rules and regulations
- Better overview of Companies Accounts
- Instant Reporting
- Tax Predictions
- Easier Audits
- NEED FOR OUTSOURCING:
Each and every business benefits from outsourcing book keeping as it is the most reliable, accurate and professionally guided service. Bookkeeping is concerned with identifying financial transactions, recording them in the books of accounts and classifying them. Bookkeeping is a routine job which needs to be done on a daily basis. Choosing the right bookkeeping service provider is a crucial choice, choose one wisely as it can have a huge impact on the business.
Question. What is included in bookkeeping services?
- Recording of year round transactions for a particular financial year covering all aspects of the business i.e. bank, sale, purchase, stock, cash, receipts, payments, loans, debtors etc. along with preparation of ledger accounts.
Question. What is the charge for outsourcing my bookkeeping services?
- Book keeping services are charged according to the entries which are recorded round the year. Online book keeping service providers are provide customised packages to suit every business’s needs. For package enquiry visit our website and connect with the professional click on the link https://www.caonweb.com/bookkeeping-and-accounting-services.php
Question. What are the skills of a bookkeeper?
Answer. Knowledge of the Indian accounting framework
Data entry skills
Understanding best accounting practices
High attention to detail
Proficiency in Microsoft Excel
Question. What are the benefits of bookkeeping?
Answer. Improves decision making
Ease in preparing financial statements
Compliance with the best accounting practices
Assistance to Management
Facilitates settlement of tax liabilities
Question. Why do we need an accountant?
Answer. An accountant helps in developing a system to account for financial transactions by defining book keeping policies and procedures. Maintaining accounts by verifying, allocating, and posting transactions and by balancing subsidiary accounts by reconciling entries.
Question. What are the steps in an Accounting Process?
Answer. The steps of accounting process are as follows:
- Financial transactions
- Analysing and interpreting
Question. Is there a difference between Book Keeping and Accounting?
Answer. Accounting is a wider term which includes bookkeeping, wherein book keeping is mainly concerned with the recording of financial data whereas accounting is art of recording, classifying, summarising financial data and interpreting the results thereof.