Significance of Bookkeeping for Every Business
The words accounting and bookkeeping are often used synonymously, however accounting encompasses the activity of bookkeeping. So what is bookkeeping? Bookkeeping deals with recording of your business’s financial transactions. It is concerned with capturing systematically and classifying meaningfully the financial data of your incomes and expenses in a business. Bookkeeping is primarily record maintenance of your affairs on an appropriate accounting software which ultimately supports the financial accounting process. It is key to generating financial statements of a Company at the end of any period or financial year.
Bookkeeping is carried out by using source documents such as income/sales invoices or expense bills etc. that represent your financial transactions for a company. Bookkeeping is technically undertaken by way of double entry system of accounting globally. So bookkeeping process, and through it, essentially bookkeepers, aid accountants (CPAs/Chartered Accountants) in the accounting process which mainly focuses on completing financials by assuring application of international accounting standards, thereby providing meaningful financial statements such as Balance sheet, profit and loss statement, cash flow statement etc. Also well managed and consistent bookkeeping abets accountants in providing company management with financial analysis, financing decisions, account payable and account receivable management.
Above all this, bookkeeping is a legal requirement for every business globally. Every country’s governing law stipulates bookkeeping and is unavoidable for filing of a business’s tax returns.
CharterCPA is an expert accounting firm, offering accounting services, including end to end bookkeeping for any kind and size of business. We manage bookkeeping and accounting jobs for companies across various industries and offer end to end accounting back office solutions, thereby providing single point services for all your finance and accounts function needs. Our services match the service levels of Big 4 accounting firms. We are big enough to serve you, as well as small enough to care!
To understand how we can make your business accounting simple and informative, Schedule a call with us today for free initial consultation.
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