Bookkeeping is vital to track financial records to maintain your business regulatory compliance. So, you will need professional accounting services to manage your financial books perfectly.

Let's know more about Bookkeeping services in detail:

What is a Bookkeeping Service?

A bookkeeping service is essential for recording your business financial transactions. It will allow users to have a track record of all your debits and credit transactions that will help them to know the performance of your business. Consult the chartered accountant office if you want to hire them.

Apart from holding financial records, bookkeeping services can help you in;

• keeping track of performance indicators
• charging, managing, and reporting
• comparing the bank statements with the financial statements
• organizing financial records
• getting tax returns ready
• keeping track of accounts owed and receivable
• preparing a budget or doing a cash flow analysis

Although, it is very crucial to know that bookkeeping differs from accounting. Bookkeepers prepare the accounts on the based of financial statements. On the other hand, accounting means preparing, documenting, analyzing, and briefing the financial statements helping businesses to track their performance.

What does a Bookkeeping Service do?

A bookkeeper's primary work is to offer precisely upgraded financial records so that the accountants can create annual financial statements & reports and file tax returns for your business.

Some primary and secondary bookkeeping services provided by a bookkeeper are;

Entry of data

Data entry is nothing more than the process of documenting financial transactions or keeping track of the money that enters and leaves your company. Since reliable financial data is necessary for creating financial statements, it is the cornerstone of bookkeeping and accounting services. This is because having correct financial records will give you, as the business owner and other stakeholders, an accurate and fair picture of how your company is performing.

Reconciling the Banks

The term "bank reconciliation" describes comparing the financial transactions in your books of accounts to those listed on your bank statements.

Financial Reports per Month

• Every month, a bookkeeper must provide various financial reports to monitor your company's progress. Here are a few of these financial reports:

• A balance sheet is a document that shows your company's current financial situation.

• A profit and loss statement shows whether or not your business is profitable by keeping track of earnings and expenses.

• A cash flow statement lists all transactions and displays the company's available cash.

• Accounts receivable is a statement that lists the debtors, the amount owed to consumers, and the due dates for such receivables.

• Accounts payable is a statement that lists the creditors, the amount owed to suppliers, and the due dates for those payments.

These reports show whether or not your company is successful and whether it has enough cash on hand to cover day-to-day expenses. The accuracy of these reports, if not maintained by the bookkeeper, can affect your business spending, client payment terms, and predictions.