Keeping accurate records of financial transactions in books is one of the main tasks of a bookkeeper. The process is known as bookkeeping, under which there are several tasks to be fulfilled. Moreover, depending on the business, their role is quite diverse.
Bookkeeping is a process of recording and organizing financial transactions that have occurred in the course. It is an integral part of accounting that mainly focuses on recording day-to-day transactions of the business. Transactions, such as sales revenues, payment of taxes, payroll, additional expenses, payable and receivable transactions and others are recorded in books.
What Is The Importance Of Bookkeeping?
Bookkeeping mainly ensures that all the records of financial transactions and other data are up-to-date and accurate. Thus business, small or big, needs to have accounting bookkeeping in place. It helps to keep track of all the receipts, payments, sales and purchases and other transactions.
Generally, in-house bookkeeping consumes a significant amount of time and money of the owner. Therefore, business owners can always outsource accounting services to an accounting firm. In Mumbai, accounting firms like Business Guru offer accounting and bookkeeping services to entrepreneurs. The professionals perform several tasks that need accuracy and undivided attention to record accurate day-to-day financial data.
Following are the day-to-day duties of a bookkeeper to run a business.
5 Business Bookkeeping Tasks Of A Bookkeeper
Data entry
Data entry is the foundation of every bookkeeping and accounting operation. Entering the right numbers into the accounts is how you truly understand your business is doing. It is the process of recording financial transactions, the ins and outs of money going around the company.
If you miss any numbers, things like debt will hover over your business. You might put your company at risk and lose sight of profits. Nowadays a lot of bookkeeping work is done on the software. You can link all your business systems together so that information flows directly into your books.
Payroll
If only you had to pay the staff, things would be a lot easier. But there are things such as tax deductions, managing leave entitlements and other human resource issues.
Payroll is a critical task to keep the employees happy. But it is also important to comply with the rules and regulations laid by the government. Failing to do so can result in fines. There is payroll software that can automatically calculate pay and deduct, create payslips and generate reports for the tax office.
Tax status of individual employees can change for all sorts of reasons and payroll can become a headache. It is therefore advisable to outsource bookkeeping services where professionals expertly handle every operation.
Invoices
If you have bills, you have accounts payable. Slow or late payments will not do any good to your business. To maintain good terms with the supplier, make sure all the bills are paid promptly.
Bookkeepers maintain a ledger by typing them in or by emailing them to your accounting software.
Invoices can be created quickly on apps and sent with immediate payment options like credit and debit cards. Accounts receivable involves invoicing customers and tracking payment of those invoices. If there are any overdue payments, invoices help to keep track of those payments.
Reconciliation
Bank reconciliation is a way to check and do quality control on your books. The process of comparing the records against your bank’s, you’re doing bank reconciliation. You need to make sure your entries should match up with their records.
It helps you find and fix any data entry mistakes or missed transactions. It also detects any fraud accounting if there is any.
Reporting
Financial reports/statements tell you how your business is doing. It also shows how much profit has gained in the year.
Bookkeepers traditionally prepare monthly reports that help keep tabs on the business. Generally, the end-version of the reports is created by the accountant. Moreover, it will help in setting strategies for the year ahead.
Conclusion
If you are looking for bookkeeping and accounting services in India, connect with Business Guru. Visit their website for more information on their services and expertise.
For further queries, get in touch with us.