Bookkeeping in finance is a concept that can be described as a systematic process of keeping records. The records are financial transactions on a day-to-day basis through proper expense classification. Businesses record transactions based on business operations to track data and make decisions regarding investments, operations, and other financial matters. The process records purchases, business payments, sales, and receipts for every transaction made in the business. The procedure also helps maintain the accuracy of financial data, understand the business’s profitability, and ensure legal compliance.
It is a necessary process in accounting, especially for small business owners. Maintenance of daily accounts through bookkeeping helps in better tracking and regulation of activities of the business. The process helps in cash flow management, and the preparation of financial statements, and the inputs can later be used to make strategic decisions. Hiring an expert company to take care of the process could be the wisest decision to take your business forward.
As a small business, it is important to invest in good bookkeeping services despite having a low volume of sales and a small number of employees. It helps ensure long-term sustainability and growth. This is why we at Entelyglobal take care of bookkeeping services to help you achieve your goals. We do it through strategic, innovative, and reliable solutions.
What is small business bookkeeping?
Bookkeeping is a fairly simple process. It could be summarized in the following 4 steps.
1. Classification of transactions
The first step of book keeping is to determine the nature of the transaction and record it under their respective accounts. For instance, a sales income should be credited to the sales revenue account. Assigning proper accounts always helps in the preparation of financial statements. It helps in reflecting the true status of the business.
2. Recording journal entries
If a company is opting for manual bookkeeping services, the debit accounts are recorded on the left-hand side of the ledger and the credit is recorded on its right. Entering accurate values through proper journal entries helps in checking and correcting balances. Remember, debit and credit always tally and if otherwise shall indicate an error.
3. Posting entries to the ledger
After the assignment of entries to the respective accounts, the values are posted to the general ledger to gain an overview of the business’s current status of cash. This is also known as the management of accounts.
4. Making adjustments to entries at the end of respective accounting periods
If there are adjustments in the entries, they shall be made at the end of their respective accounting periods. For instance, there may be invoices that were later paid and were not initially in the records, these have to be entered in as adjustments. These adjustments make the books more reliable in terms of accuracy. It is important to remember that the data for the basis of payroll accounts such as salaries and taxes have to be compiled from these transactions and hence must be accurate.
The process appears simple, but if you think the solution to your financial problems could be solved through a “Bookkeeper near me” it’s more than record maintenance it is the process that becomes the foundation for accounting. Bookkeeping and accounting are different concepts and the differences are:
Bookkeeping is an accounting process that involves the classification and recording of financial transactions. Accounting is a process that involves analyzing, interpreting, and reporting a summary of all business transactions. Focus Bookkeeping is focused on the recording of day-today activities. The accounting process is about gathering all the bookkeeping data chronologically and summarizing it into financial statements. Process Bookkeeping process’s accuracy is necessary for the accounting process. The accounting process is necessary for the assessment of the performance of the company and for conveying it to the company’s stakeholders.
These differences are simple and subtle, hence need careful attention. Understanding the differences are necessary. as “Bookkeeper near me” search would fetch popular results but the business’s future is in your hands and hence it is advisable to choose carefully.
Benefits of Online Outsourcing
Bookkeeping Services Given below are some of the benefits of outsourcing bookkeeping services.
Cost reduction and time savings
Hiring people to conduct bookkeeping services will require payment of salaries, benefits, and involvement of training costs. Outsourcing helps in the reduction of these costs and provides the opportunity to choose a flexible pricing structure. They also help eliminate additional office space and expenses on accounting software. This helps save time from unnecessary actions.
Access to expertise and advancements
Outsourcing bookkeeping services helps in getting access to experienced persons who have the expertise and knowledge about the latest accounting practices. Firms that provide online small business bookkeeping services typically use cloud-based systems and advanced technologies that may otherwise be outside the business’s budget. Additionally, their expertise helps in easy compliance with accounting and tax regulations along with insights into trends. It also helps in improving efficiency and accuracy.
Help in business scalability
Any business goes forward with the motive of growth. As the business evolves, it is important to stay in the competition. This involves quick adaptation to changes in the market, accounting standards, methods, etc. Outsourcing helps in gaining the necessary support to withstand and adapt to these changes.
Focus on strategic options
Outsourcing the process aids in the reduction of overhead and operational costs. This makes resources available for diverting to other important activities and initiatives that help the business grow. Additionally, it helps in organizing financial data that helps in better decisionmaking.
Quality assurance
Small business bookkeeping services are specially designed to cater to the needs of small businesses. They provide tailored performance audits and implement best practices. They simplify complex sets of data that make stakeholder communication easier. Through quality and accurate service, they pave the way for making strategic business decisions too. Thus, it helps in better financial management.
Key Bookkeeping Services Offered
- General ledger maintenance
- We track all your business transactions accurately and classify them appropriately(daily).
- Management of accounts receivables and payables
- We track all your incoming payments and customer updates and handle all of your invoices.
- With Entelyglobal, you can organize payments, keep records of them, and pay them on time on
your behalf. Trust us! No more late fees or missed deadlines. - Credit card and bank reconciliation
- We regularly update bank and credit card records. Our consistency in reconciling credit card and bank statements will save you much of the hassle.
Payroll processing
We can guarantee you the processing and management of payrolls and their accuracy. This helps your business pay your employees on time and adhere to labor and tax laws.
Financial reporting and tax compliance
Organized financial data helps in better reporting. It helps the stakeholders understand the true status of the business. This helps in better budgeting and forecasting. Additionally, we are updated on the current accounting standards, practices, and rules. As your preferred online small business bookkeeping service, we also keep an eye on the prevailing trends to know the latest available software! We will ensure a smooth tax preparation and filing process.
Why Choose Us for Your Bookkeeping Needs?
- We can save 6x on the cost incurred of hiring “in-house bookkeepers”.
We help you save resources and time through consistent updates. - We provide a robust setup to ensure smooth and quality delivery of services.
- We have got you back 24/7.
- We provide you with a transparent process.
- You could trust us better than the results that come up when you search “small business
bookkeeping services near me”. Unless you are really near us then we would be the best online
small business bookkeeping service you have come across. We promise!
Industries We Serve
- Retail and e-commerce
- Professional services (consultants, lawyers, etc.)
- Hospitality and restaurants · Construction and contractors
- Nonprofits and startups. If you feel we are the right fit for you then click here. Or reach us: +1
(940) 228 0506 Email: sales@entelyglobal.com