Is taking care of your business finances taking away more time than your actual business itself? Looking for solution to overcome this problem? Then you have arrived at the right place. Here I will tell you all about professional bookkeeping services, outsourcing, the advantages it has and how it could save you from the trauma of in-house bookkeeping.
First of all, you need to know what bookkeeping is all about. Bookkeeping, in actual terms refers to managing your finances – cash flows, day to day cash statements, profits, losses and taxes. Bookkeeping in Atlanta and the rest of the US also includes maintaining the purchases, sales, receipts and payments. All this is done in the day-book. Nowadays, this day-book could be maintained electronically or manually. There are multiple types of day-books, depending on the type of cash transactions that are maintained.
• sales daybook: for recording the sales invoices.
• sales credit daybook: To record the sales debit and credit records.
• purchase day-book: As the name says, it maintains the purchase records and invoices.
• Cash day-book: All petty cash flows, money paid and received are recorded along with the receipts.
• Journal day-book: for recording the day to day journals.
Depending on the size of your business this might vary. There are two types of bookkeeping:
1. Single entry bookkeeping: This is take care of small businesses. Single entry means that the petty cash flows, day to day operations, profit loss statements etc. will be noted down by the accountant. This could be done on a daily basis or on a weekly basis depending on the amount of cash transactions present. The book in which this is maintained is called the day-book. This is relatively easy to do and is followed by businesses where the finances is not a big affair. Since this is easy and less complex, it is slightly prone to errors.
2. Double entry bookkeeping: This is useful for large businesses. Double entry means that there is lot of cash transactions. A lot of interactions needs to be noted down. Hence this is done by relatively bigger organizations. Since there is lot of data, a simple hand-written daybook might not suffice. Generally, double entry bookkeeping is done electronically. There are a variety of software available which makes this process easy and seamlessly flexible. However, since this is relatively complex, you would need somebody who is experienced in this business. This is also less prone to errors.
Depending on the size of your financial transactions you could choose which one best suits your company.
If your core business needs a lot of attention, then it might be difficult for you to take care of the bookkeeping aspects as well. For such cases, it is good to hire professional bookkeeping services. This is nothing but the outsourcing of all your finances to an external trust worthy partner who could handle the finances in a much professional way.
There are a wide range of services that the professional bookkeeping agencies would offer. First of all, managing of your financial statements. They could take care of all the finances, including the tax and statutory issues. This would leave you with a lot of time to take care of your professional core business.
Also, the credibility that these agencies offer is spectacular. You can be rest assured that your financial information is in the hands of a trust worthy partner. All the professionals hired by these service agencies are thoroughly checked, their background is verified and then they are assigned to take care of your finances. So, you need to take time and effort in checking the credentials of the professionals.