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Bookkeeping is a phenomenal job in itself. Bookkeeping requires uttermost interest and technical expertise to be involved in such a process.
Bookkeeping may be described as a process that keeps track of all the financial transactions that are carried on by an individual or an organization. Bookkeeping is maintaining records of the entire sales, purchase and its monetary involvement.
Bookkeeping process can be carried out manually with the help of pen and paper if the business or individual needs are small. Since Bookkeeping involves tax calculation also, a level of complexity comes in the process of bookkeeping. To counterpart the tax calculations and minimizing of calculation errors a new inclination can be seen towards use of varied Software to suffice the process of Bookkeeping.
A person who does Bookkeeping is responsible for tracking the transactions in the Ledgers. He forwards the process till Trial balance is calculated. Going ahead it's the duty of an accountant to prepare the profit-loss statement and balance sheet.
Accounting
Accounting is a specialized field functioning in each and every organization to maintain and process all relevant financial information that is required for managining and reporting purposes. Traditionally, the work regarding data management and storage had been done on clerical level, appropriately known as bookkeeping.
Person responsible for accounting is known as accountants. He can have a subspecialization of several levels. A person who wants to become an accountant can get his specialized education done in secondary schools, postsecondary business schools, community colleges, and four-year colleges and universities.
Accounting Bookkeeping services
Companies like Outsourcing Bookkeeping Services offer various type of bookkeeping accounting services, bookkeeping services and e-accounting services for all types of bookkeeeping businesses.
Services included under bookkeeping accounting services are
- accounting reconcilition
- General ledger maintenance
- Inventory reconcilition
- Payroll processing
- Budgeting.
Another company, Samarak provides business services for bookkeepers over the web. Services provided include:
- Website Development: The company develops websites for bookkeepers and accountants to maintain and attract business.
- Search engine optimization: The company presents bookkeepers and accountants on the search engine named Syracuse Bookkeeper.
Difference between accounting and bookkeeping
The role of bookkeepers is to process precise and accurate records, while producing vital reports on up to date financial conditions of their company. They maintain the 'business checkbook' and record routine money transactions like customer payments into a cash receipts journal. After this, they check to vendors into a cash disbursement journal.
Additionally, they perform payroll processes. Transferring or posting of journal totals to the 'general ledger' is done at the end of month for the preparation of financial statements by the accountant.
While, accountants manage and design financial systems used by bookkeepers. Preparation of monthly financial statements and tax returns at year end comes under the duties of accountants. In addition to this, they design and prepare budgets for loan proposals for bankers and do cost analysis for their company's product or services.
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