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Select a package that will meet your business's needs. Our experts will help you with your selection.
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We handle customer onboarding and financial statement preparation. and other required tasks
Bookkeeping is vital not just for tracking your company's financial situation, but also for regulatory compliance.
Building and maintaining bookkeeping and accounting records takes a significant amount of time and work. Hence, chartered accountants must offer a wide range of accounting and bookkeeping services to assist you in conveniently maintaining your books of accounts.
Let's define accounting service, what a bookkeeping service performs, and how a bookkeeping service may help your business.
What is a Bookkeeping Service?
Bookkeeping service is the technique of documenting and tracking your company's financial transactions. Bookkeepers are obliged to summarise your company's operations into financial reports on a regular basis. These reports indicate your company's financial situation as well as its performance.
Bookkeeping services comprise, in addition to the maintenance of financial records:
- Preparation of Tax returns
- Invoicing
- Monitoring performance indicators
- Cleaning up books of accounts
- Maintaining accounts receivable and accounts payable
- Reconciling financial statements with bank statements
- Undertaking budgeting or cash flow analyses
- Management reporting
Nonetheless, it is crucial to distinguish between bookkeeping and accounting services. Bookkeeping is the process of keeping daily financial records. Hence, bookkeepers gather financial data with which financial statements or books of accounts are generated.
On the other side, accounting describes the preparation, reporting, analysis, and summarization of financial data gathered by bookkeepers. The accounting reports provide a quick picture of your company's performance and financial situation.
Every transaction or occurrence is often recorded in two independent nominal ledger accounts as part of the double-entry bookkeeping method.
What services does a bookkeeping firm provide?
In order for the accountants to create yearly financial reports and tax returns for your company, a bookkeeper must deliver precise, current financial data.
You as the business owner and other stakeholders, such as managers, utilize these accounting reports to aid in business decision-making.
Below are some basic and secondary bookkeeping services that a bookkeeper may offer to your company.
- Data Entry
Data entry is simply the process of recording financial transactions or keeping track of what comes in and what goes out of your firm. It is the cornerstone of bookkeeping and accounting services since reliable financial data is required for financial statement preparation. This is due to the fact that correct financial records will provide you as a business owner and other stakeholders with a real and fair picture of how your company works.
- Bank Reconciliations
The practice of comparing the financial transactions in your books of accounts to the transactions reported in your bank statements is referred to as bank reconciliation. The goal of bank reconciliation is to ensure that the financial transactions documented in your books of accounts match those reported in your bank statements. Bank reconciliation is critical for your organization since it assists in identifying and correcting data entry mistakes or ignored transactions.
- Account Receivable and Accounts Payable and payroll
A bookkeeper makes sure that your clients receive invoices and payments on schedule. In addition, he makes sure that any unpaid invoices to suppliers are paid promptly and without running out of money. He makes sure that invoices are paid on time to prevent delivery delays and the withholding of supplier credit.
A bookkeeper handles payroll in addition to managing accounts payable and accounts receivable. This entails figuring up employee pay, adjusting deductions, and making sure that the net wages are distributed to the workers on the due date. Making salary payments on time would guarantee that your staff is content. From the perspective of compliance, correct payroll is also crucial.
- Monthly Financial Reports
Every month, a bookkeeper must provide a variety of financial reports in order to monitor your company's success. These are a few of these financial reports:
- Balance sheet: a report that shows your company's present financial situation.
- Profit and Loss: a report that tracks income and costs and shows whether or not your firm is profitable.
- Cash flow statement: a report that lists all cash transactions and shows how much money the company has on hand.
FAQs about Bookkeeping
There are several advantages to accounting, including the following:
- Businesses are required by the Companies Act to submit yearly returns to the registrar of companies, and failure to do so can result in significant fines and other penalties. It is essential to have a record of their financial statements and an accurate record of the company's book of accounts in order to file these forms.
- The Income Tax Act mandates that businesses perform yearly audits, which can only be done properly if the accounts are kept in accordance with the law.
- Also, bookkeeping enables businesses and people to manage their costs, maintain tabs on their income, and make wise financial decisions.
Accountants and bookkeepers are familiar with the foundational concepts and significance of accounting. It's important to appropriately categorize costs as either capital or income. Businesses may spend their time and attention on operating their operations instead of dealing with the difficulties of bookkeeping by outsourcing their bookkeeping needs.
Since the number of transactions is small, most businesses may not need to hire a full-time accountant because it could not be financially feasible during the startup's earliest stages. Without having to hire a full-time accountant or bookkeeper, we provide specialized accounting and bookkeeping services tailored to fit the needs of startups.
Our professionals will offer assistance with the creation of typical financial records and statements. This will comprise, but not be limited to:
- Balance sheet
- Trial balance
- Account payables and account receivables
- profit and loss account