Bookkeeping services are necessary for all businesses to ensure accurate operational / financial information. Such information is required by Management, Regulators, and Investors. Also, it is a legal requirement for any business to maintain an appropriate book of accounts to ensure that all relevant taxes are paid and tax filings are made on time.
Bookkeeping is the process of recording financial transactions of a business in an accounting system and the creation of reports. However, many small businesses do not have complete accounting departments and require external bookkeeping services.
Accountants may handle more advanced tasks like tax preparation, budget analysis, and investment development. Both accountants and bookkeepers frequently use advanced financial software to record and track their information.
Accounts Payable Functions
Accounts Receivable Function
Send us the copy of books
Send us the scanned copy of your accounting books and one of our experts will get in touch with you
Analysis of your books
Our experts shall then analyze your accounting books and make entries into books according to the same
Verification and approval by you
As per the next procedure, the final tally entry shall be sent by our experts to you for verification and approval
Preparation of Balance Sheet
Once approved by you, our experts will then prepare the balance sheet and PNC statement of the same
Your work is completed
Once the balance sheet and PNC are prepared, the books of accounts are finalized and completed and sent to you
Purchase and Sales Bills
Payment Vouchers with Signature & Authorised Signature
Tally Updation or Excel Updation
Statutory Payments Fililing (ESI & PF)
Bookkeeping is the process of keeping accurate records of company spending and revenue. Some small business owners decide to do their own bookkeeping to save on costs while others prefer to hire a trained accountant. Aside from making filing corporate taxes easier, there are advantages to doing accurate bookkeeping that every business owner should understand.
A comprehensive bookkeeping system allows a business owner to analyze spending and revenue one item at a time. The data can be grouped by the week, month, quarter or year to be analyzed and compared to past years. This is one way that business owner can discover ways to cut back on company spending and improve profitability.
Companies require an accurate report of current spending and revenue to help compare actual results with projections in the annual budget. A bookkeeping system facilitates up-to-date company financial information that can be cross-checked with the budget to make sure that the company is not overspending. Bookkeeping also identifies instances of under-spending so the company may find new uses for the extra money to help productivity.
A bookkeeping system makes it easier to report revenue for tax filings at the end of the year, but a comprehensive spending profile can also help you find tax deductions that will lower your tax burden. If you do your own bookkeeping, you need to stay updated on tax laws and changes in the tax code that may allow you to take deductions to help offset the costs of doing business. Without a bookkeeping system, you would have no documentation to back up your deductions.
Bookkeeping services include checking the accuracy of each payroll period to make sure that each employee receives the proper amount an especially important function in organizations that pay bonuses, sales commissions and supplemental payment based on a percentage of revenue. Confirming payroll numbers keeps employees satisfied with their pay and prevents the company from over- or underpaying payroll taxes as well.
Accounting is known as the language of business, and as such it benefits management in many ways. Accounting involves recording transactions and compiling them in reports. An important advantage of accounting information over other types of information is that it is based on numbers, measurable data. It is black and white: you have a profit or you have a loss the numbers speak for themselves.
One advantage of accounting information is that it is objective and based on generally accepted accounting principles. These are rules to be followed in accounting to make reports standard and comparable. Data entered in an accounting system is verifiable data, not opinions or wishes. Accounting information is unbiased.
Another advantage of accounting information is that it is reliable. For example, when you see $40,000 in accounts payable, you owe that much to others. If you have questions about that, reports can show you how that number was calculated. Numbers do not come out from pies-in-the-sky. To make it to an accounting system, data has to make sense and to have proper documentation to back it up. In a well-run accounting department, reconciliations are made and procedures are in place to assure reliability and accuracy of information.
Accounting reports can be analyzed to provide management with financial information that can be used to run a business, plan ahead and to make changes when business is not going as expected. If sales of a certain item are flat and not as expected, accounting reports show this reality and management can make decisions about it--a clear advantage of accounting in format.
Accounting Book Keeping
You should hire a bookkeeper as soon as you begin your business. This way you’ll avoid mistakes from the starting and reduce headaches.
No way! You shall still maintain 100% control of all decisions and all checks will still be signed by you. You choose what merchants get paid and when. We provide with the data and perform the specific task, but you approve all receipts for payment and sign all checks.
You should hire a bookkeeping service as soon as you start your business. This way you can avoid mistakes from the beginning and thus reduce headaches. Depending on your needs our bookkeepers can complete an entire year’s bookkeeping in as little as 3 hours’ time.
If you own a Private Limited Company, then it’s recommended that you hire a professional bookkeeping service. Bookkeeping requires the use of double-entry journal accounting to ensure that the Trial Balance is correct. As a Private Limited Company, whether you have one member or fifty members, the compliance, accountability and accuracy should be the same.
A bookkeeper puts together a complete database of your business income and expenses for your financial year. On the other hand, an accountant takes the bookkeeping data and creates the necessary books of accounts for tax compliance. The danger here is that the work of the bookkeeper has a direct affect on the work of the accountant. If the books of accounts are wrong, then the accounting reports will also be wrong. Hence, the importance of using a first-rate bookkeeping service is key to the success of your business.
Bookkeeping is relatively inexpensive and is crucial to the success of your business. It is important to keep an accurate record of your income and expenses, so you can make the right decisions at the right time thus reducing preventable losses. Small businesses are especially vulnerable in this area as they perceive great compensation from this exercise but underestimate the true value of labour and materials required. You would be better off with a bookkeeping service that will accept your receipts every two months and keep you profitable.
You must treat these as two separate businesses with two separate books of accounts. It is simple and clear rule that each business has its own books of accounts and GST registration as well. Also, each business requires its own separate business bank account.
Books of accounts comprise of a Journal, a Ledger Book, a Trial Balance, Original and carbon copies of Bills/Invoices/Receipts /, Cash Book, Profit and Loss A/c, Balance Sheet and Cash Flow Statements.
Companies and LLPs are required to maintain books of accounts as mandated by their governing statutes, namely Companies Act, 2013 and Limited Liability Partnership Act, 2008. Further, Income Tax Act, 1961 also obligates the maintenance of the books of accounts, irrespective of the form of business, and has separate provisions related to it. Thus, there may be a situation where a Private Limited Company is required to comply with such legal provisions as well.
If I’m recording all my financial transactions (incomes, expenses, purchase, sales, etc.) in an excel sheet and keeping records of bank accounts/pay slips/vouchers, am I accounting all my transactions?
Yes, you are on the right track as you that would imply that you are preparing a part of books of accounts. But it does not cover all your transactions, so in order to keep records of all the transaction you need to maintain additional books of accounts like Journal, Ledger, Trial Balance, Cash Book, P&L A/c, Balance Sheet and Cash-flow Statements in commonly accepted accounting software, such as Tally or Oracle.
Maintaining or not maintaining books by handing over the job to a professional firm does not determine whether you need to undergo audit or not. Furthermore, there are several different types of audits such as, internal audit, cost audit, tax audit and statutory audit. Each audit has its own statutory requirements, thresholds of being conducted with relevant deadlines and due dates.
If accounting is the product, accounting standards are its manual. Accounting standards are enacted and published by the institute of chartered accountants of India which is meant to be followed by businesses for true and fair recording of their transactions. All accounting standards are not mandatory for all forms of businesses. Simply put, the bigger your business, the number of accounting standards which need to be followed.