The two interchangeable word which is bookkeeping and accounting often misunderstood by most starting businessman. But for a smart person, especially when one is engaged in business, should be able to identify the thin line between bookkeeping and accounting. It is important to have knowledge about these two business term to track your business status; whether it's earning or not. Bookkeeping makes precise record of what was purchased and what was sold, in other words, these are expenses and the revenue earned by the company. It's also the basis for the gains and losses incurred in a company, as reviewed by the accountant. This will be the indicator of whether your business is earning or not, if your company is doing well or not, if it is safe to continue going on with the business.
However, if there is a possibility of recovery and they need people to work in the financial aspect of the company, it is preferable to ask the advices of Boston bookkeeping, who are experts on where the company went wrong and if there is still a chance to grow. Based on data gathered by the bookkeeper from all transactions of the company; the financial layout of what the company has done and where it is going is clear on the report analyzed and summarized by the accountant.
However, these two processes that are vital in the smooth operation of a business; should go hand in hand, as is done by Boston bookkeepers. While accounting's concern is summarizing the financial data of a business company, the bookkeeping area takes care of the concerns on taxes and all legal requirements of the business, like tax advantages and liabilities of the company. Aside from that, a bookkeeper should know all about current laws and regulations pertaining to running a business which the accountant is an expert of, therefore knowledge of this must be imparted to the bookkeeper, as well as providing guidance on things that are vague to him.
Bookkeeping must do daily recordings of all financial transactions made by the company; such as receipts of payments, purchases and sales, and keeps a record of this. It is the responsibility of the accountant to identify and evaluate these records, which are summarized in a financial report.
Bookkeeping work is essential and should not be taken for granted, because it is a tedious task that requires much patience. Not having a bookkeeper in the company, a lot of financial data that need to be properly recorded will be neglected, including the preparation of payroll and taxes, which are essential to business operation. Business owners who do not have the kind of people to their service must to outsource, and outsourcing the services of a Boston bookkeeper. Their efforts should be appreciated for data entry in a systematic and organized fashion, which contributes a big impact on the financial health of the company.
However, if there is a possibility of recovery and they need people to work in the financial aspect of the company, it is preferable to ask the advices of Boston bookkeeping, who are experts on where the company went wrong and if there is still a chance to grow. Based on data gathered by the bookkeeper from all transactions of the company; the financial layout of what the company has done and where it is going is clear on the report analyzed and summarized by the accountant.
However, these two processes that are vital in the smooth operation of a business; should go hand in hand, as is done by Boston bookkeepers. While accounting's concern is summarizing the financial data of a business company, the bookkeeping area takes care of the concerns on taxes and all legal requirements of the business, like tax advantages and liabilities of the company. Aside from that, a bookkeeper should know all about current laws and regulations pertaining to running a business which the accountant is an expert of, therefore knowledge of this must be imparted to the bookkeeper, as well as providing guidance on things that are vague to him.
Bookkeeping must do daily recordings of all financial transactions made by the company; such as receipts of payments, purchases and sales, and keeps a record of this. It is the responsibility of the accountant to identify and evaluate these records, which are summarized in a financial report.
Bookkeeping work is essential and should not be taken for granted, because it is a tedious task that requires much patience. Not having a bookkeeper in the company, a lot of financial data that need to be properly recorded will be neglected, including the preparation of payroll and taxes, which are essential to business operation. Business owners who do not have the kind of people to their service must to outsource, and outsourcing the services of a Boston bookkeeper. Their efforts should be appreciated for data entry in a systematic and organized fashion, which contributes a big impact on the financial health of the company.
About the Author:
Edward Davidson is a Boston bookkeeper equipped with knowledge, skills and experience to do his job well and to meet the standard set by Boston bookkeepers to provide clients accurate and systematic bookkeeping. Unique version for reprint here: Essential For Business, Bookkeeping And Accounting.
No comments:
Post a Comment