Book-keeping is the systematic recording and organizing of financial transactions in an organization, which involves the process of recording, analyzing, and interpreting financial transactions of a business entity. Accuracy is a vital factor in this process, thereby ensuring that all transactions are up-to-date and correct. It is a distinct process that takes place as part of the accounting process in any business.
Accounting (or accountancy) is the process of measuring, processing, and communicating financial information about a particular business or organization.
The objective of basic accounting and bookkeeping in business is to help stakeholders make critical decisions by providing them with relevant financial information. Usually, there are set structures in place called 'quality controls', which ensure that timely and accurate records are tracked and provided to the stakeholders.
In the initial phase of any small business, there's a lot of planning going on; new products, new services, strategies, generating leads, etc. Many small business owners end up being overwhelmed and eventually disorganized in their paperwork and receipts, leaving them no time to sit down and crunch numbers for the day. This leaves the accounts team with limited information to work with.
The benefits of accounting are numerous. Other than helping you make smart decisions regarding the future of your company and acting as a source of information, it is also vital for employee management and can help you keep up on your competitor's success. You will also be able to detect waste, fraud, and carelessness that occurs in a business and to avoid them in the future.
By referring to your financial statements frequently, you will also get to know if your cash flow is positive or negative so that you can make adjustments as required.
Setting up accounting systems and software properly.
Documenting each transaction with proper support.
Maintaining historical records by filing documents.
Recording cash, cheques, and vouchers.
Maintaining subsidiary accounts through verifying, allocating, and posting transactions.
Balancing subsidiary accounts by reconciling entries.
Balancing general ledgers by preparing a trial balance; reconciling entries.
Entering day to day transactions in books/ accounting software.
Performing checks, reconciliations, and end-of-year processes.
Ensuring they are up to speed with legislative requirements and management reports.
Undertaking payroll duties and compliance.
Providing general business administrative support.
Credit control & cash management.
Budgeting & monthly accounts report, known as MIS.
Do you need an accountant, a bookkeeper, or both? For the growth of any business, it is necessary to start and maintain solid and professional accounting practices. Keeping records might seem to be an uphill job, but we can make this easier for you.
Contact us for bookkeeping and accounting services today.