Services We Offer
Bookkeeping Services in Brookefield
MS Legal Associates:We provide bookkeeping services in Brookefield.
About Bookkeeping Services
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. There are several standard methods of bookkeeping, such as the single-entry bookkeeping system and the double-entry bookkeeping system, but, while they may be thought of as "real" bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.
Bookkeeping is usually performed by a bookkeeper. A bookkeeper (or book-keeper) is a person who records the day-to-day financial transactions of a business. He or she is usually responsible for writing the daybooks, which contain records of purchases, sales, receipts, and payments. The bookkeeper is responsible for ensuring that all transactions whether it is cash transaction or credit transaction are recorded in the correct daybook, supplier's ledger, customer ledger, and general ledger; an accountant can then create reports from the information concerning the financial transactions recorded by the bookkeeper.
The bookkeeper brings the books to the trial balance stage: an accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
In order to grow a successful enterprise one needs to concentrate more in building the business while keeping a close watch on the day to day financial transactions. Hiring a certified bookkeeper/accountant or managing an in-house accounting department works out to be more expensive as well as cumbersome.
Bookkeeping tasks cover following
1. Setup of accounts
2. Clean up of books
3. Recording of all expenses and income
4. Maintaining various ledger and sub-ledger accounts
5. Fixed assets accounting
6. Reconciliations - bank, branch, inter-company, ledger and sub-ledger, credit card
7. Month-end and year-end closing
8. Consolidated financial reporting
9. Financial statements and reports preparation
10. MIS reporting
1. Billing for goods sold or services provided to clients.
2. Recording receipts from customers.
3. Verifying and recording invoices from suppliers.
4. Paying suppliers.
5. Processing employees' pay and the related governmental reports.
6. Monitoring individual accounts receivable.
7. Recording depreciation and other adjusting entries.
8. Providing financial reports.
Bookkeeping requires knowledge of debits and credits and a basic understanding of financial accounting, which includes the balance sheet and income statement.
The electronic speed of computers and accounting software gives the appearance that many of the bookkeeping and accounting tasks have been eliminated or are occurring simultaneously. For example, the preparation of a sales invoice will automatically update the relevant general ledger accounts (Sales, Accounts Receivable, Inventory, Cost of Goods Sold), update the customer's detailed information, and store the information for the financial statements as well as other reports.
The accounting software has been written so that every transaction must have the debit amounts equal to the credit amounts. The electronic accuracy also eliminates the errors that had occurred when amounts were manually written, rewritten and calculated. As a result, the debits will always equal the credits and the trial balance will always be in balance. No longer will hours be spent looking for errors that occurred in a manual system.
The bookkeeping process primarily records the financial effects of transactions. The difference between a manual and any electronic accounting system results from the former's latency between the recording of a financial transaction and its posting in the relevant account. This delay-absent in electronic accounting systems due to nearly instantaneous posting into relevant accounts-is a basic characteristic of manual systems, thus giving rise to primary books of accounts such as Cash Book, Bank Book, Purchase Book, and Sales Book for recording the immediate effect of a financial transaction.
Two common bookkeeping systems used by businesses and other organizations are the single-entry bookkeeping system and the double-entry bookkeeping system. Single-entry bookkeeping uses only income and expense accounts, recorded primarily in a revenue and expense journal. Single-entry bookkeeping is adequate for many small businesses. In the double-entry accounting system, at least two accounting entries are required to record each financial transaction. These entries may occur in asset, liability, equity, expense, or revenue accounts.
The primary bookkeeping record in single-entry bookkeeping is the cash book, which is similar to a checking account register, but allocates the income and expenses to various income and expense accounts. Separate account records are maintained for petty cash, accounts payable and receivable, and other relevant transactions such as inventory and travel expenses. These days, single-entry bookkeeping can be done with DIY bookkeeping software to speed up manual calculations.
A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts.