Bookkeeping & Accounting

• Bookkeeping
• Tasks of Bookkeeper
• What does a Bookkeeper charge?
• 4 Benefits of Bookkeeping Services to Small Businesses
• Accounting
• Task of accountant
• What does an accountant charge?
• Difference between bookkeeping and accounting tasks
• conlusion

Introduction

Are you thinking to hire an accountant or bookkeeper? You will surely want to know about these two and their responsibilities to decide which one your company requires. People often get confused between a bookkeeper and an accountant. In this blog, we will compare bookkeeping and accountancy along with their services and see the kinds of businesses they can pay their contribution to.

Bookkeeping

Bookkeeping is a process of maintaining organized data of all the financial transactions of a business on daily basis. It may also refer to numerous recording methods offered to businesses. For several reasons, bookkeeping is a core part of the accounting process. When transaction records are kept up to date, you may create reliable financial reports that aid in measuring the company’s success. Detailed records would also come in handy if you are subjected to a tax audit.

This blog will lead you through the various accounting procedures and how entries are recorded.

Methods of Bookkeeping

• Single-entry bookkeeping
• Double-entry bookkeeping
• Cash-based or accrual-based

How to Record Entries in Bookkeeping

• Cash registers
• The Journal
• The ledger
• Trial balance
• Financial statements
• The cash flow statement

Tasks of Book Keeper

A bookkeeper’s responsibility is to keep detailed records of every financial entry that happens at the firm. Bookkeepers handle everyday transactions in a consistent and readable format. Accountants can accomplish their duties because of the records maintained by a bookkeeper.

These are some examples of common bookkeeping tasks:

• Keeping track of financial transactions
• Posting debits and credits
• Creating invoices
• Payroll administration
• Upkeep and balancing of ledgers, accounts, and subsidiaries

One of the basic responsibilities of a bookkeeper is to keep a general ledger, which is a document that tracks the amounts from sales and expenditure receipts. To manage its entries, debits, and credits, ledgers may range in complexity from a piece of paper to bookkeeping software such as QuickBooks and Xero.

What does a Bookkeeper Charge?

The fee or rates you’ll pay to a bookkeeper are defined by your company’s bookkeeping requirements. Your prices are influenced by three major factors:

Services: The bookkeeping services your company needs, as well as the amount of time it takes to accomplish them on a weekly or monthly basis, influence how much it costs to engage a bookkeeper.

Expertise: If your records are complicated or you make a lot of sales, then it may engage a qualified or licensed bookkeeper. A professional bookkeeper may provide you with peace of mind and assurance that your money is in excellent hands, but they will also be more expensive.

The local market: The location of your firm might also affect how much you spend on a bookkeeper. The national average remuneration for bookkeepers is $25.39 per hour, according to the Bureau of Labor Statistics. 

However, prices totally depend on a company. Bayareaaccountacy provides their expert service in bookkeeping at a very reasonable price of just $18 per hour.

4 Benefits of Bookkeeping Services to Small Businesses

Never Miss a Deadline for Bill Payments

Operating a business requires time, and often the little aspects missed. Paying a bill late is one of those routine activities that may have serious implications, therefore it’s vital to outsource this responsibility to someone who has the expertise and time to monitor paying corporate bills. Because it’s their job, a bookkeeping service excels at it.

Payroll

You may be the only employee right now, or you could be part of a team. If your company grows to incorporate additional personnel, accounting services are an excellent way to handle all of your payroll demands.

Reports

Many small-scale business owners are unaware of their company’s true financial situation. Your company will suffer if you do not analyze and keep track of your money. Access to important financial information is vital, and bookkeeping services create the reports you want as often as you require.

 Avoid Overdraft Fees and Additional Interest Payments

Bank reconciliation is a task that is often delegated to accounting services. Don’t depend on bank statements to provide an accurate picture of your financial situation. A bookkeeper will manage your accounts payable and receivable and input the information into your preferred financial software so you know what your true balance is.

Accounting

Accounting refers to the affair of documenting a corporation’s financial transactions. accounting is the analysis of financial data recorded by a bookkeeper and the provision of critical business insights and financial recommendations to company owners based on that information. The accounting process generates reports that bring together critical components of a firm’s finances to provide a full view of where the finances are, what they mean, what can and should be done about them, and where to anticipate the business to go in the coming years.

Task of Accountant

Here are some examples of common accounting tasks:

• Data verification and analysis
• Reporting, auditing, and creating financial reporting documents such as tax returns, income statements, and balance sheets
• Forecasting, company trends, and growth prospects are all provided.
• Assisting the company owner in understanding the impact of financial choices
• Making changes to entries

Accountants also ensure the correctness and conformity of financial documentation with applicable rules and regulations. Their responsibilities start after the work of the bookkeeper is done. They have to work further on the data created by bookkeepers and create reports by analyzing that data that directly helps in making important decisions in the organization.

What does an Accountant Charge?

According to the United States Bureau of Labor Statistics, the typical annual compensation for accounting services in California will cost you nearly $79,560, or $38.37 per hour. However, the price is affected by their years of expertise, your location, and the intricacy of your accounting demands.

Accountants will either offer a set fee for a particular service or charge a standard hourly rate. Concerning the work, accounting services by Bayareaaccountacy start from $27.50 only. Contact Here

Difference Between Bookkeeping & Accounting Tasks

Bookkeeping is keeping the record of financial entries and organizing them, whereas accountancy is analyzing that data and generating reports to provide financial insights based on that data. Difference Between Bookkeeping & Accounting,

Conclusion – Bookkeeping & Accounting

Bookkeeping is simply maintaining records of financial credits and debits whereas accountancy services include analysis of the data provided by a bookkeeper and helping the firm in making financial decisions. Bookkeeping and accountancy services in California will cost you an average of $28 and $38 respectively. Both processes play a crucial role in the process of the financial growth of a business.