Bookkeeping is an integral part of accounting in a business. It is a systematic record maintained for all the financial transactions in the business. These financial transactions include all type of purchases, sales, receipts and expenses made by an organization or an individual. Accuracy is vital in this process. Bookkeeping is a base for accounts; therefore each transaction must be recorded with proper care as it becomes more complex with the introduction of assets, investments, loans and tax.
Bookkeeping involves ledger maintenance, charts of accounts and tiresome double entry system and so on. The person responsible for bookkeeping will be responsible for recording all the transactions, including but not limited to:
Generally, people get confused between bookkeeping and accounting, but both the things are different from each other. Accounting refers to the overall practice of managing the finances for a business, while bookkeeping is specific to recording of different financial activities involved in a business. Businesses outsource companies for bookkeeping and usually prefer either offshore bookkeeping services or online bookkeeping services as per the business requirements.
Offshore bookkeeping service guarantees the precision, quality and safety of your sensitive data. All the required documents and papers are shared with the outsourcing company through e-fax or by sharing the scanned copy of the documents via mail. Once the documents are received, the information is filed in the document management system and the transaction details are updated in the accounting software of your preference. The company ensures that all the documents shared with them are secure and are encrypted through the internet. These companies use multi-tier authentication to safeguard your highly sensitive data.
Small and emerging businesses prefer online bookkeeping services to manage their day to day transactions, payrolls and tax planning. These services offer you all in one solution. When we talk about all in one solution, these services include things like payment of bills, categorization of income and expenses and updating of all the bank and credit card statements. It is beneficial for businesses with a tax planner but doesn’t have their own bookkeeper. It is affordable, safe and easy to use and understand.
Most people prefer online bookkeeping services over traditional services these days because they offer bookkeeping solution, accounting solutions, payments management and tax planning in single software.