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If one would have a degree in accountancy, then he can actually put up his own firm that would provide bookkeeping and accounting services. Basically, if a business does not have an efficient accountant or bookkeeper, then they could always hire one from a firm that provides this kind of service. For those who are interested in this type of field, here are some things that have to be done.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
When that is done, then the company accountant would have to make a trial balance for the preparation of the financial statements. Now in order to save time, it is usually the contractual accountants or bookkeepers who will be doing doing the financial statements for the client. It is because they know how the government would want businesses to present their financial statements.
So of course the first thing that these bookkeepers would be doing would be to prepare the income statement. For those who do not know, the income statement is the report that will showcase the income versus the expenses of the company. If the income is more than the expense, then the company has a net income but if it is the other way around, the company has a net loss.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other investments.
Lastly, the bookkeeper would be making the statement of financial position which shows the assets versus the liabilities and equity. Basically, all of the accounts will be present in this statement. This is known to be the most important of all statements as it is the one that will show whether a business is doing well or not.
Now after the three financial statements have been done, then the bookkeeper will just have to do a double check. Once he has already made sure that everything is complete, then he may actually submit the documents for auditing. So if one is providing bookkeeping and accounting services, he will be doing all of these things for his client.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
When that is done, then the company accountant would have to make a trial balance for the preparation of the financial statements. Now in order to save time, it is usually the contractual accountants or bookkeepers who will be doing doing the financial statements for the client. It is because they know how the government would want businesses to present their financial statements.
So of course the first thing that these bookkeepers would be doing would be to prepare the income statement. For those who do not know, the income statement is the report that will showcase the income versus the expenses of the company. If the income is more than the expense, then the company has a net income but if it is the other way around, the company has a net loss.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other investments.
Lastly, the bookkeeper would be making the statement of financial position which shows the assets versus the liabilities and equity. Basically, all of the accounts will be present in this statement. This is known to be the most important of all statements as it is the one that will show whether a business is doing well or not.
Now after the three financial statements have been done, then the bookkeeper will just have to do a double check. Once he has already made sure that everything is complete, then he may actually submit the documents for auditing. So if one is providing bookkeeping and accounting services, he will be doing all of these things for his client.
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If you want information about reliable bookkeeping and accounting services pay a visit to the web pages online here today. You can see details at http://pbsmanagementservices.org now.
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