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What is Bookkeeping?

ByDave Stopher

Aug 27, 2019

Early in the stages of becoming a new business owner, the owner most likely has heard from multiple parties that they should get bookkeeping services perth to keep the company’s books and finances on track. A new business owner is already overwhelmed with a variety of tasks that they may not have anticipated. Receiving a level of assistance can go a long way, so perhaps a bookkeeper is a great idea, but what exactly is a bookkeeping service, though? Bookkeeping services provide a three-tiered system that works to develop and maintain a company’s overall financial process and management. The first tier is formed from an accounting software specialist. This specialist assists the business owner in creating an accounting data file that is specifically tailored to the specific needs of the business and the owner.

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The second tier of a bookkeeping service is the full-charge bookkeeper. The standard duties that a bookkeeper has consisted of tracking payables and receivables while documenting the business’s financial transactions. In addition to those basic duties, a full-charge bookkeeper may manage payroll, deposits, creating and maintaining monthly financial reports, and management of sales taxes. Bookkeepers can also reconcile bank statements to internal accounts as well as offering assistance during an audit. While a business owner may feel that they can handle this massive amount of responsibility on their own, the reality is that while that may be true, a bookkeeper will eliminate the stress of those tasks while also completing them correctly and in a timely manner.

Between the first two tiers that focus on accounting and bookkeeping, the owner will now have a system of checks and balances. With this system in place, department spending will be reported to the bookkeepers and analyzed while they also handle any money that is owed to the company or what the company owes to someone else. In addition, all spending is contrasted with its budget in order to review and analyze any potential discrepancies and create a more accurate future budget.

The final tier of the three tiers of bookkeeping is called the controller. The controller works with the system of checks and balances to put the business in a better place with their financial accountability. Another aspect that makes up the controller’s job is the task of reviewing the bookkeeper’s ledger for accurate data while keeping the future integrity of the accounting data file at the forefront of their work. A final task that a controller handles is to issue a monthly financial report that indicates any issues the company may be facing that requires the owner’s attention to correct for the future.

The Benefits of Bookkeeping

Bookkeeping services company offer a variety of benefits to a company, but perhaps the most beneficial aspect of their service is the underlying structure that is put into place. Bookkeeping services institute a financial process that offers consistency in assisting the overall strength of one’s company and helps to create uniformity for tasks such as tracking, paying, and reporting. This financial process insulates the business from many costly and dangerous risks that one may have been faced with if the service was not in place. Additionally, a bookkeeper assists with creating coordination between the departments of one’s business. When they are working to approve purchases or gather expense reports, they have to interact and work with the various departments throughout the company. This creates a sense of being on the same page and unity throughout the entire business.

Along with the underlying structure and the sense of uniformity and unity, bookkeepers also work to reduce a business’s overall expenses. While they do ensure the books are properly maintained and free of mistakes, fees, and penalties, they can also alert ownership of waste and mismanagement of supplies and inventory. Bookkeeping services do all they can to save a business both time and money, but they also work to create a longer life for the business while also increasing efficiency.

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Source: https://precondo.ca/

Contact Shmunky Bookkeeping

For business owners in London, a top of the line bookkeeping service in London is Shmunky Bookkeeping. This local bookkeeping service in London works to offer business owners the right solution for their business. Through their offer of unique services that are designed specifically to what their clients require, they achieve their goal. With their embrace of digital online bookkeeping, Shmunky Bookkeeping of London is able to achieve not only basic bookkeeping and compliance requirements, but they can also provide accurate and high-level reporting.

Shmunky Bookkeeping is located at 42 Maypole Green Rd in Colchester. Their office can be contacted via phone at 078-529-71048 or via email at info@shmunky.co.uk. For more information regarding their services or their company as a whole, visit their website.