An NYC bookkeeping service, simply put, constitute of recording of all sorts of financial transactions pertaining to your business or institution.
Also known as bookkeeping, these services include expenditures, revenues, sales, purchases, receipts, commission earned, payroll et al, related to an individual or a business. Bookkeeping is an integral aspect of accounting, but not accounting per se, as misconstrued by several individuals.
Bookkeeping services for an individual or a family would mean documenting the details of money borrowed or lent, keeping track of earnings and expenditures in a cash account record, bank account and credit card statements and passbooks.
NYC bookkeeping services are provided by certified and experienced bookkeepers. These personnel are well-versed with the nitty-gritty and intricacies of book keeping. Some of the major bookkeeping services include the following.
- Sales Invoicing
- Job Costing
- Recording Purchase Invoices
- Bank Reconciliation
- Preparing VAT Returns
- Credit Control
- Annual Ledger Preparation
- Ledger Reconciliations Pertaining To Debtors, Creditors & Stock
Significance Of an NYC Bookkeeper
A right understanding of bookkeeping and associated services is a must to understand the financial functioning of your business. Practically, bookkeeping services entail recording the details of money that flows in, goes out and eventually remains with you or your company. The organization could be a privately owned or government run, a business of any size or even a charitable foundation.
An efficient bookkeeper must be aware of all the rules and regulations that need to be followed while maintaining tax records. Poor bookkeeping could lead to underpaid tax amount and as a consequence, regulatory authorities might impose heavy penalties in accordance with the existing legislation. Thus, it is in the interest of businesses and individuals to employ professional bookkeeper to avoid any such dire situation.
How Does Bookkeeping Work?
A bookkeeper may enter the day-to-day financial transactions either manually or via an electronic system such as QuickBooks. For a normal business routine, every time a financial transaction occurs, there is a document produced supporting the same.
Primarily, two bookkeeping methods are used by professional bookkeepers.
This method entails recording monetary transactions in a revenue and expense journal, using only income and expenditure accounts.
This system involves recording each financial transaction twice, in the form of debit and credit entries.
Following are the tools used in recording such transactions.
A chronological record of everyday monetary transactions with their appropriate description is called a daybook. There are various subtypes of daybooks; the ones pertaining to sales, sales credits, purchases, purchases credits, cash and petty cash and journals.
These constitute of a record of balances in accounts. These include sales ledgers, purchase ledgers and general ledgers.
The most essential aspect of bookkeeping is staying up-to-date and precise with the entry of every financial transaction. Getting lackadaisical with book keeping can get your business into grave trouble. Hence, it is prudent to hire efficient book keeping staff or hire the services of experts to ensure smooth economical functioning of your organization.