Updated: Mar 28
To some business owners, doing bookkeeping is probably their least favorite task. Even ones who are confident with bookkeeping, may simply not have enough time to handle the books. It's easy for mistakes to creep in when a business owner tries to handle the books on his own. Small miscalculations or disorganized payment tracking can all lead to costly consequences.
That's why the right bookkeeping services have the answers to these problems. Bookkeeping looks easy however, it is very easy to mess up. Therefore only by a careful bookkeeper that a book can be handled well. Bookkeeping services help owners by recording transactions carefully and thoroughly.
At the end of the day, proper bookkeeping gives business access to reliable financial data, which is critical for making decisions. This article will explain a bookkeeping service, why businesses need it, and what services may be provided.
TABLE OF CONTENTS
What is a bookkeeping service?
Bookkeeping service is the process of recording and tracking a business's financial transactions. Bookkeepers must periodically prepare financial reports that summarize the performance of their business.
Bookkeeping services cover financial statements like
1. Income Statement: revenue and expenses over time.
2. Balance sheet: current financial state
3. Cash flow statement: a record of cash and cash-like equivalents entering and leaving your organization.
4. Statement of Owner’s Equity: how your share of capital, reserves, and retained earnings changed in a reporting period.
Why is bookkeeping service important?
Are you curious as to why your business needs a bookkeeping service? Why should I use a bookkeeping service? Because keeping your own books is not that easy.
Bookkeeping is tough. You won't automatically be familiar with even the most fundamental bookkeeping unless you have a degree in accounting. You must learn.
In most cases, bookkeeping is boring. Numbers are everything. It's painful to watch your business expenses rise and revenue fall.
Bookkeeping, especially for beginners, is time-consuming.
Bookkeeping is prone to errors, which can be costly.
In general, data entry and receipt sorting are a bookkeeper's duties. They record all financial transactions in your general ledger utilizing double-entry bookkeeping.
Yet, bookkeeping is more than just entering numbers into a spreadsheet.
It also requires careful analysis and a basic understanding of the law.
Having a professional bookkeeper guarantees that your books are in order and your deductions are legitimate. The right bookkeeping service can allow you to breeze through any audit with ease.
Looking for more bookkeeping services and their benefits to your business? Continue reading to learn more about types of bookkeeping services.
List of bookkeeping services:
Accounts payable and receivable (make sure you get paid on time, and pay your bills on time)
Credits and debits
Collect and send sales tax to the government
Incoming cash is to be recorded and deposited at the bank.
Monthly bank reconciliations
Provide precise financial statements to your CPA at tax time.
Keep your annual budget in order
Report faults and variations when they arise.
A bookkeeper can help the accountant with tax preparation (which is a good thing, because bookkeepers are less expensive than CPAs). They cannot help with tax returns or planning.
How can bookkeeping services will help you?
Better budgeting, knowing where every dollar goes
Easy tax filing with organized books.
Audit-proof business with IRS-required documents
Understand your company's seasonal changes.
Know your revenue, costs, profitability, etc.
More time for operations
After all, you can hire an in-house bookkeeper, which is more expensive and requires you to manage their benefits and insurance. Or, you can outsource virtual bookkeeping services, such as those offered by Irvine Bookkeeping. We may not be the best bookkeeping team in the world, but we promise to support your business as if you were our only client.
You can schedule a free call to set up your first consultation meeting. After that, we can collaborate to come up with a solution for your business's bookkeeping that is specifically tailored to your needs.