Accounting & Book Keeping

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Book keeping is the process of recording financial transactions of a business enterprise in a structured manner. The book keepers record each and every financial transaction, whether incoming or outgoing, of cash resources of a company. The book keeping also assists the accounting process of a business entity?

Accounting for businesses means the analysis of the book keeping processes and provide the business owner with the exact financial scenario of his/her business process. Accounting tells the business owner about how much, when and where of the financial transactions of the company by presenting the expenses and revenues on a daily, monthly, quarterly and annual basis. This helps the business owner in making key decisions about the future expenses, revenues, investments, taxes and other financial aspects of a business.

A businessman may be a complete expert in a particular domain of knowledge. He may have that knowledge and experience to setup a successful business enterprise. But he/she may not have a keen interest in the accounting and book keeping of the business. He/she may not have the required exposure to the methods and mechanisms by which accounting information could be employed for a good decision-making process. The role of the specialist accounting and book-keeping agency begins at this stage. The agency is required to record and present the financial information of the business entity to the business owner in such a way that the business owner could derive value out of this exercise.

The accounting and book-keeping companies set up a process wherein each and every financial transaction of the client company is recorded and maintained for future use. All the bills and invoices issued by the client company and bills and invoices issued to the client company are recorded at multiple times and collated at a later stage for any discrepancy. Another set of processes are developed to reconcile the books on a daily, weekly, monthly basis and the reconciliations are performed in an efficient and effective manner.

Bookkeeping

Bookkeeping is the recording, storing and retrieving of the financial transactions of the business on daily basis and it is part of the process of accounting in business. It includes all the transactions, operations and other financial activities of the organization. Transactions include sales and purchases, Receipts and payments by individuals and corporate.

Important tasks of bookkeeping

Invoicing for goods sold and services provided to the customers
Recording receipts and payments
Paying and receiving to or from suppliers
Processing employees’ pay and other transactions
Recording depreciation and other entries
Preparation of financial reports

Accounting

Accounting means the recording of financial transactions of a business. These transactions are classified, recorded and summed up to give useful information. Thus, the accounting process starts with the recording of business transactions in financial terms, in the primary books of accounts. For the recording of financial transactions, it is important that these transactions are evidenced by specified source documents such as cash memos, sales bills, purchase bills, receipts of cheque issued, salary slips and etc.

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