Recording the day-to-day financial affairs of a business is a part of Bookkeeping. The preparation of financial accounts is known as Accounting. Accounting is mandatory for all forms of businesses including Small Enterprises and Freelancers. Apart from the compulsion, it is always better to keep the financial statements up to date and accurate to avoid financial muddles. Maintenance of accounts is as essential for a home-run business as it is for an industrialist. There are mandatory standards of accounting a business needs to follow. To conform to such criteria, it becomes essential to take help from experts.
What are Accounting and Book Keeping Services?
Accounting is the process where a track of income and expenses is kept. Accounting is done by an Accountant and he is a person who shall offer strategic financial advice as well as he shall be well aware about the company’s financial situation.
While Book-Keeping is the process where the records of financial transactions are kept. Also, preparation of financial statements such as balance sheets and income statements are part of Book-Keeping. It is the responsibility of the Book-Keeper to ensure that the employees are filing invoices and expenses correctly. Also, handling payroll comes under the purview of Book-Keeping services.
Benefits of Accounting and Bookkeeping:
- To gauge the income and expenditure of the business
- Timely access to operational information
- Regular reconciliation rationalizes decisions
- Attract investors with accurate financial statements
- Ready to furnish data for timely compliance