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Bookkeeping Services

For small businesses and entrepreneurs, having an organized and accurate system to track accounting is crucial. However, many need more expertise, time, and resources to handle bookkeeping themselves. This is where using a bookkeeping service can be a significant help.

Bookkeeping services maintain a company’s accounting records, including tracking income, expenses, accounts payable and receivable, payroll, taxes, and other transactions. Keeping these records allows businesses to meet tax and legal obligations, have visibility into their accounting position, and make informed decisions.

Experienced bookkeeping professionals use accounting software to record entries, manage accounts, process payroll, reconcile bank statements, and produce accounting reports. Rather than handling this work in-house, businesses can outsource these tasks to bookkeeping firms and access professionals who specialize in this area. This saves the business owner time and money.

Types of Bookkeeping

There are two main types of bookkeeping:

  1. Double Entry
  2. Single Entry

Single Entry Bookkeeping
This is the most basic system where only revenue, expenses, and withdrawals are recorded. While simple, it needs to provide detailed analytics or a balance sheet to give a complete accounting picture. It is best for tiny businesses and contractors.

Double Entry Bookkeeping
In the most commonly used standard system, transactions are recorded as debits and credits in a general ledger. Assets, liabilities, capital, income, and expenses are tracked. Accounting statements like balance sheets can be prepared. Provides more thorough monitoring and analysis.

Align Costs with Strategy & Focus on Growth

Full-Service Bookkeeping

 

With full-service bookkeeping, a bookkeeper handles all of a company’s bookkeeping needs. This includes tasks like recording transactions, reconciling accounts, processing payroll, preparing financial statements, and more. Full-service bookkeepers work closely with the business owner to ensure books are accurate and up-to-date. They can work on-site or remotely.

Payroll Services

 

Payroll bookkeeping handles all aspects of employee compensation. Services include:

  • Calculating wages and deductions.
  • Producing payroll checks/deposits.
  • Filing payroll taxes.
  • Generating year-end tax documents like W2s.

Accounts Receivable

 

Accounts receivable (AR) bookkeeping deals with tracking, billing, and collecting money owed to a business by customers/clients. AR bookkeepers send invoices, record payments, process deposits, follow up on late invoices, and reconcile AR. Having an AR bookkeeper can improve cash flow.

Accounts Payable

 

Accounts payable (AP) bookkeepers handle bills and payments owed by a business to vendors, suppliers, contractors, etc. Services include entering purchase orders, recording liabilities, processing checks, leveraging discounts, and managing AP ledgers. AP services help ensure vendors are paid on time.

Advantage of Bookkeeping

For any business, proper bookkeeping is essential for managing accounting, meeting tax requirements, and making sound decisions. There are several critical advantages to regular, accurate bookkeeping practices:

Detailed Records: Bookkeeping provides meticulous documentation of all accounting transactions, including sales, expenses, payroll, taxes, accounts receivable/payable, and other income and expenditures. These records provide visibility into the complete accounting picture.

Track Profitability: Detailed records allow businesses to analyze sales and costs to track profitability over time. This helps identify what product lines or services are most lucrative.

Managing Cash Flows: Knowing strictly when income and expenses occur through bookkeeping helps manage cash inflows and outflows effectively. This aids in decisions about borrowing, debt payments, capital purchases, etc.

For entrepreneurs and business owners, diligent bookkeeping is time well spent. It provides crucial insights into the business’s true profitability and financial position. This, in turn, enables data-driven decisions, more innovative strategies for growth, and protection in case of audits or lawsuits. The advantages of bookkeeping extend across all aspects of the business.