Our staff performs monthly or quarterly accounting services to assist your company in properly executing top notch financial reporting. We also offer payroll preparation and payroll tax reporting services. We provide staff for accounting overload to handle cut-off, bank reconciliations, adjusting journal entries and reports. We prepare monthly cutoff schedules for client accounting staff and provide staff for permanent and temporary controllership functions.
Bookkeeping refers to the recording of financial transactions, which is part of the accounting process for businesses and other organizations. These transactions can include purchases, sales, receipts, and payments by an individual or an organization/corporation. There are several bookkeeping methods. While they may be considered to be “real” bookkeeping, any method that’s used to record financial transactions is a bookkeeping process.
In an organization, the person who performs any of the bookkeeping functions is called a “bookkeeper.” He or she is responsible for writing the daybooks (which have records of any sales, purchases, receipts, and payments), where each financial transaction (whether it’s a debit or credit) is recorded. Each transaction is recorded in the appropriate daybook and in the general ledger. The accountant will use these records to create financial reports from the information that was recorded by the bookkeeper.
Types of Bookkeeping
There are several types of bookkeeping, but two the most common include:
- Single-Entry Bookkeeping — This method records all transactions in a single row and is good for keeping track of cash, taxable income, and tax-deductible expenses.
- Double-Entry Bookkeeping — This method records all transactions twice (usually as debit and credit entries) and often uses the accrual method for liabilities, equities, assets, expenses, and revenue.
While single-entry bookkeeping is simple, the double-entry method is more thorough and is less likely to produce errors.
The Difference Between Bookkeepers and Accountants
Accountants and bookkeepers are both there to keep accurate financial records, which is why the two terms are often used interchangeably. The bookkeeper’s main job is to focus on administrative tasks (such as completing payroll and recording financial transactions), while an accountant can help businesses to understand the broader scope of their financial situation.
While accountants can perform tasks associated with bookkeeping, the title involves other responsibilities as well. They can interpret the financial records that have been put together by the bookkeeper to evaluate the financial health of a company. They can also perform more advanced analysis and prepare tax returns. That’s why accountants have to go through more education and training than bookkeepers.
The Functions of a Bookkeeper
Bookkeepers provide the records that are needed for businesses to understand their financial situation. They also look for any monetary issues that may need to be taken care of. Proper planning and scheduling are important parts of bookkeeping, because they need to stay on top of records on a weekly or monthly basis.
Bookkeeping will involve several different elements and steps that apply to every type of business, which include the following:
- Documenting every financial transaction (both payments and expenses).
- Recording all debits and credits.
- Sending invoices and processing payments.
- Preparing financial statements (such as the balance sheet as well as reports for income and cash flow).
- Maintaining and balancing a general ledger.
- Performing daily banking activities.
- Completing functions related to payroll.
Bookkeepers can work with a number of different clients, and their main responsibility is to take care of the daily financial activities that are associated with their business. They oversee and record all incoming and outgoing transactions, create budgets, and balance ledgers. They may even have to manage payroll.
The Importance of Bookkeeping for Your Business
Keeping up with records for your business might be something you’re willing to do yourself, and the system you use doesn’t have to be complicated. The ledgers can be straightforward, especially if you only have a few employees (or none at all). The most important part of the bookkeeping process is to stay organized and to keep track of the details, which starts with deciding on which system you want to use.
If you prefer to delegate this task to someone else, you might be wondering where to look. You can start by reaching out to other business owners for recommendations. You can also look online for people who provide this service. You can even read reviews on Google or Yelp. If you don’t feel comfortable with hiring a freelancer, there are a number of firms that offer bookkeeping services.
In this day and age, the people you work with don’t have to be in the same city, state, or time zone. Remote work has grown considerably in almost every field (including bookkeeping). So if you find someone who is a good fit for your business, it doesn’t matter where they are.
If you’re looking for a CPA in Corpus Christi to help you take care of all your bookkeeping needs, be sure to get in touch with Jennings & Hawley.