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Accounting and Bookkeeping

Accounting and Bookkeeping

Accounting and bookkeeping refer to maintaining and recording transactions of buying and selling goods and services in an accounting system commonly including copies of invoices and other documents. Proper records of the financial transactions not only assist the companies to identify the companies’ financial position but also allow them to compare the performance over the year and the results achieved.

Quite often, accounting and bookkeeping services can be daunting tasks for companies considering the nature of their operations and the availability of resources. This is why companies outsource this function to experts who not only maintain the records on behalf of the companies but also provide the companies with valuable analysis of their transactions which may help companies to achieve greater efficiencies. Check here for detail

Advantages of outsourcing Accounting and Bookkeeping services to experts:

  • Eliminate the time and cost of hiring in-house
  • Saving in cost without reducing the quality of work the firm that offers such services has expert professionals with enough experience 
  • Data security
  • Timely availability of report required for making informed decisions
  • Tailor-made solutions as per the need of the business
  • With the professionals taking care of the accounting function, time, and resources can be utilized in other functions.

How ASC Helps?

We, at ASC, have expert professionals who have years of experience in maintaining the financial records of companies. Keeping in view the business requirements, we customize our services which primarily include the following:

  • Identification of the records to be maintained considering the status of person e.g. company or individual and any other regulatory laws;
  • Identification of the medium for sharing the data in order to maintain data security;
  • Recording of transactions in the accounting system monthly or fortnightly as per the requirement of the business;
  • Ensure timely compliances of TDS/WHT or ESI or EPF under various regulatory laws;
  • Generation of strategic reports as per the requirement of the business enabling businessmen to take an informed decision.

Frequently Asked Questions

Q
What is the importance of accounting in business?
A

Accounting or bookkeeping plays a significant role in operating a business in keeping track of expenditures & incomes. Accounting or bookkeeping ensures accurate statutory compliance and offers investors, management, and government quantitative financial information that helps companies to make various important decisions.

Q
When shall the gratuity become payable ?
A

The gratuity becomes payable when an employee leaves the organization for any of the following reasons: • Retirement or superannuation • Termination or resignation • Disablement or death due to an accident or disease • Layoffs or retrenchments • Voluntary Retirement Scheme.

Q
What is the Difference Between Bookkeeping and Accounting?
A

In financial terms, Bookkeeping and Accounting are almost used interchangeably though both concepts are different and can be daunting tasks for companies considering the nature of their operations and the availability of resources. Bookkeeping is defined as the recording of financial transactions, accounting deals with the analysis, interpretation, reporting, classification, and summarization of the business financial data. Whereas, Accounting is the systematic process of recording, measuring & communicating information about the financial transaction in a business. Accounting helps in identifying the financial position of a company and showcase to the stakeholders.

Q
What is the importance of accounting in business?
A

Accounting or bookkeeping plays a significant role in operating a business in keeping track of expenditures & incomes. Accounting or bookkeeping ensures accurate statutory compliance and offers investors, management, and government quantitative financial information that helps companies to make various important decisions.

Q
What is the Difference Between Bookkeeping and Accounting?
A

In financial terms, Bookkeeping and Accounting are almost used interchangeably though both concepts are different and can be daunting tasks for companies considering the nature of their operations and the availability of resources.

Bookkeeping is defined as the recording of financial transactions, accounting deals with the analysis, interpretation, reporting, classification, and summarization of the business financial data. Whereas, Accounting is the systematic process of recording, measuring & communicating information about the financial transaction in a business. Accounting helps in identifying the financial position of a company and showcase to the stakeholders.

Q
What are the significant accounting processes?
A

The primary processes of accounting are:

  • Data Communication
  • Data Identification
  • Data Recording
Q
Does every business require Accounting and Bookkeeping Services?
A

Yes, businesses of all sizes and categories require accounting and bookkeeping services for preparing, estimating, and maintaining proper records of tax returns, finance, and transactions. This requires outsourcing accounting and bookkeeping to professionals or hiring an outsourcing firm with expertise in assisting the company with end-to-end support. 

Q
What is accounting software?
A

Accounting software is developed for keeping track of the cash outflows & inflows of a company. There is various kind of accounting modules through which software functions, such as Account Payable, Account Receivables, General Ledger, etc. The software also manages reporting and payroll systems.

Q
What are the managerial functions of accounting?
A

There are primarily 5 managerial functions in accounting:

  • Cost control.
  • Formation of planning & Managing of financial policy
  • Preparation of financial budget.
  • Assessment of employee’s performance.
  • Prevention of frauds & errors. 
Q
What are the key responsibilities of the bookkeeper?
A

Bookkeepers play an essential role in a company for taking care of the client’s general ledgers. Bookkeepers’ most important responsibilities are:

  • Compiling data daily
  • Sorting expenses in the general ledger
  • Reviewing and assessing the general ledger to maintain accuracy and avoid mistake
  • Reconciling bank statements in contradiction of the general ledger
  • Creating financial statements
Q
What are the services Bookkeepers provide to the companies?
A
  1. Cheque Preparations
  2. Bank Reconciliations
  3. Accounts Payable
  4. Expense Reports
  5. Accounts Receivable
  6. Financial Statements
  7. Payroll
Q
Why outsourcing Accounting and Bookkeeping services are more beneficial than hiring an employee?
A

Hiring an in-house expert can be comparatively expensive and time-consuming. Also, it is very important to understand the financial burden to in-house employees that directly affect the company's growth. You need to pay your salary on time and manage associated costs like office equipment, employment taxes, office space, payroll, etc. These can be stressful. Outsourcing Accounting and Bookkeeping can reduce the burden on a company with several other benefits. The experts are knowledgeable and experienced enough handling for multiple companies and manage stress smoothly and accurately.

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