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How Bookkeeping Differs From Accounting And Why It Is Important

Are you in search of account management services for your Business, and want to know if Bookkeeping is ideal for your needs? You may be uncertain as to precisely what Bookkeeping is and need more information before you make your decision. The following guide will assist you in learning the difference between accounting and bookkeeping, and determine if you should be outsourcing bookkeeping services within your organization.

What Is Bookkeeping?

Bookkeeping is a process by which a professional analyzes, records and interprets an individual’s or business’ financial transactions. It falls under the heading of accounting, in that it makes up the bulk of the process itself.

A bookkeeper works to put together financial statements for an accountant. The accountant then takes these statements to perform his or her tax and legal management in a manner that is proper and timely.

It is necessary that the bookkeeper create the appropriate financial records that serve to help the business keep track of details about its financial activities. It makes good business sense to have these records on hand, so that management can look over them and also have them for the purpose of remaining transparent with their financial status and practices.

Also, the records are required by law. According to legislation, businesses need to stay up to date on their financial records. This is especially the case when it comes to showing that they have paid their taxes.

Accurate and timely record documents are necessary to be kept by a business for a certain period from the point at which they were prepared. The period may differ based on what type of records they are, such as a longer amount of time for holding onto payroll documentation.

A professional bookkeeper should be able to conduct the following tasks:

  • Enter into transactions
  • Perform any reconciliations, checks, and end-of-year processes for the business
  • Conduct any necessary payroll duties and compliance with regulations
  • Make certain the business is up to speed with all of the management reports and legislative requirements
  • Put together BAS returns as an agent trained in BAS, or under supervision of someone who is a registered BAS agent
  • Offer up general support for business administration

Would You Benefit from Having Bookkeeping Services

You might be surprised to learn that all businesses should receive at least some basic bookkeeping services. No matter what type of business you are in and how busy you are, it is crucial you look into this for the sake of remaining in compliance with standards.

The difference between large and small businesses is that small businesses often will have a bookkeeper serve various roles. In addition to the above tasks, he or she also may perform Human Resource duties. This is a good way to save money, and also cuts back on having extra employees and departments that are not needed.

Bookkeeping is a growing business that has changed a great deal over the last few years. Now, nearly all of the work is computerized. Specialized software exists to do bookkeeping, and the role has been more clearly differentiated from accounting.

Reach out to us today to find out how bookkeeping can help your business.

The post How Bookkeeping Differs From Accounting And Why It Is Important appeared first on Incredible Planet.



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