Bookkeeping
Bookkeeping is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. This information is typically presented in the form of financial statements, such as the balance sheet, income statement, and statement of cash flows. Bookkeeping is an essential part of any organization, as it allows managers and stakeholders to track the organization’s financial performance and make informed decisions about its future. The goal of bookkeeping is to provide accurate and up-to-date information about an organization’s financial health, which can help it operate more efficiently and effectively.
Bookkeeping steps
(i) Regular bookkeeping practices including documentation of invoices, and bills.
(ii) Preparation of journal entries chronologically either manually or by the client-supported accounting software or Enterprise Resource Planning (ERPs).
(iii) Preparation of books of accounts in accordance with International Financial Reporting Standards (IFRS) requirements
(iv) Preparation of ledger accounts and grouping them in the correct heads.
(v) Preparation of Statement of Accounts for trade receivables and payables
(vi) Monthly reconciliation of bank accounts with statements of the respective bank accounts
(vii) Preparation of Ageing of Trade Receivables and Payables to locate long over-due balances.
(viii) Preparation of final accounts such as Trial Balance, Profit and Loss and Balance Sheet thereof.
Why is Bookkeeping required?
Bookkeeping is required for a variety of reasons. First and foremost, it provides accurate and up-to-date information about an organization’s financial health. This information can be used by managers and stakeholders to make informed decisions about the organization’s future. In addition, bookkeeping is essential for compliance with relevant laws and regulations. Most organizations are required to maintain accurate financial records and to produce regular financial statements, such as the balance sheet and income statement. Bookkeeping is the foundation for these financial statements, and without it, an organization may be unable to meet its legal and regulatory obligations. Finally, bookkeeping is also important for obtaining financing and for attracting investors, as it provides evidence of the organization’s financial performance and stability.
Bookkeeping service
Bookkeeping services are provided by accountants and other professionals to maintain an organization’s financial records. Bookkeeping involves recording financial transactions, preparing financial statements, reconciling accounts, and providing other support to ensure that an organization’s financial records are accurate and up-to-date.
Bookkeeping services can be provided on an ongoing basis, such as on a monthly or quarterly basis, or on an as-needed basis. These services can be performed by the organization’s own staff, by an external bookkeeper or accountant, or by a specialized bookkeeping firm.
To provide bookkeeping services, the bookkeeper will review the organization’s financial records and transactions, and ensure that they are recorded accurately and in accordance with applicable accounting standards and regulations. The bookkeeper may also prepare financial statements, such as balance sheets and income statements, and reconcile accounts to ensure their accuracy.
Bookkeeping services can help organizations to maintain accurate and reliable financial records, and comply with tax and other legal requirements. They can also provide important information and insights that can help organizations to manage their finances and make informed business decisions.
A bookkeeping service is a professional service that helps organizations manage their financial records. Bookkeeping services typically involve recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. This information is typically presented in the form of financial statements, such as the balance sheet, income statement, and statement of cash flows. Bookkeeping services can be provided by accounting firms or other specialized companies, and they can be especially helpful for organizations that do not have the resources or expertise to manage their own financial records.