Providing Bookkeeping And Accounting Services
If one is a professional in the field of accountancy, then it is actually possible for him to put up a firm that would provide bookkeeping and accounting services. Now this type of service is targeted to those businesses who would need a second opinion or a person who could create their financial statements. So if one is in this type of business, then here are the things that one would have to accomplish.
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 when one is done checking the journal accounts, then he would have to check the ledger accounts. The ledger accounts are the accounts that would go to the trial balance later on. It is the job of this contractual account to make sure the ledger accounts are ready for the creation of the trial balance which is made next.
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.
Of course they will start the process by making the income statement. This is the statement that would actually show how much income the company has made and how much expenses that the company has incurred as well. So basically, the income will be subtracted to the expenses and if the income will be higher, then the company would have made a net income.
The second financial statement that will be made would actually be the statement of equity which deals with the capital. In a nutshell, this statement will be illustrating what the changes in the capital of the business would be. It would show the net income plus the additional investments minus the withdrawals.
The last financial statement that the accountant will be doing is none other than the balance sheet. The balance sheet is the only financial statement that would contain all of the account titles of the business and would actually show whether the business is doing well or not. Basically, it is a comparison of the assets versus the liabilities and the capital balance.
Upon the creation of the three financial statements, the bookkeeper will now be able to pass them for the auditing process. So basically, these things are the bookkeeping and accounting services that the firm will be providing for private clients. If one has the accounting skills, then he will definitely be able to do a good job here as the tasks that are done will be easy for accounting majors.
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 when one is done checking the journal accounts, then he would have to check the ledger accounts. The ledger accounts are the accounts that would go to the trial balance later on. It is the job of this contractual account to make sure the ledger accounts are ready for the creation of the trial balance which is made next.
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.
Of course they will start the process by making the income statement. This is the statement that would actually show how much income the company has made and how much expenses that the company has incurred as well. So basically, the income will be subtracted to the expenses and if the income will be higher, then the company would have made a net income.
The second financial statement that will be made would actually be the statement of equity which deals with the capital. In a nutshell, this statement will be illustrating what the changes in the capital of the business would be. It would show the net income plus the additional investments minus the withdrawals.
The last financial statement that the accountant will be doing is none other than the balance sheet. The balance sheet is the only financial statement that would contain all of the account titles of the business and would actually show whether the business is doing well or not. Basically, it is a comparison of the assets versus the liabilities and the capital balance.
Upon the creation of the three financial statements, the bookkeeper will now be able to pass them for the auditing process. So basically, these things are the bookkeeping and accounting services that the firm will be providing for private clients. If one has the accounting skills, then he will definitely be able to do a good job here as the tasks that are done will be easy for accounting majors.
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