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Book keeping


 

What is bookkeeping?

Bookkeeping is the systematic recording and organizing recording, on a day-to-day basis, of the financial transactions and information pertaining to a business. It ensures that records of the individual financial transactions are correct, up-to-date and comprehensive. Accuracy is therefore vital to the process.

 

 

ECPAs through providing Bookkeeping service helps your enterprise to keep & retain the information from which accounts are prepared. Bookkeeping service provided by ECPAs is a distinct process, that occurs within the broader scope of accounting.

Traditional bookkeeping

Bookkeeping has a long history as an integral part of accounting. Traditionally, it involves ledgers, charts of accounts, and a tedious double-entry system.

Bookkeeping service provided by ECPAs covers all the main activities that should be recorded in traditional bookkeeping practices, which are still used to this day.

Recording transactions

  • In principle, transactions must be recorded daily into the books or the accounting system.
  • For each transaction, there must be a document that describes the business transaction. This could include a sales invoice, sales receipt, a supplier invoice, a supplier payment, bank payments and journals.

 

These accompanying documents provide the audit trail of ECPAs for each transaction and are an important part of maintaining accurate records in the event of an either internal or external auditing process & service provided for our clients.

ECPAs provided bookkeeping service includes recording each transaction, whether it is a question of purchase or sale, must be.

ECPAs usually set structures in place for bookkeeping that are called ‘quality controls’, which help ensure timely and accurate records.

Bookkeeping service provided by ECPAs involves the process of recording, analyzing and interpreting the financial transactions of a business or individual. The discipline of bookkeeping accounts for a large proportion of the accounting process.

ECPAs duty is to set up financial statements so that an accountant can easily perform legal and tax management in a timely manner.

ECPAs is able to produce financial records that give business accurate information about its financial activities. These records are critical to the future success of any business. Not only are these records necessary for the business, they are also required by law.

Professional Bookkeeping service provided by ECPAs ensures that businesses must have up to date financial records to ensure that they pay all necessary taxes and levies.

Bookkeeping records provided by ECPAs are kept in a way that insures that they are accurate and true for a period of at least 5 years from the date that the documents were prepared, obtained or the transaction completed, whichever occurs the latest. Some records, such as payroll, must be kept for a minimum of 7 years.

 

Why ECPAs believes that bookkeeping matters

While it may seem obvious, detailed, thorough bookkeeping is crucial for businesses of all sizes. Seemingly straightforward, bookkeeping quickly becomes more complex with the introduction of tax, assets, loans, and investments.

Tracking the financial activities of a business is the truest purpose of bookkeeping, meaning it allows you to keep an up-to-date record of the current incoming and outgoing amounts, amounts owed by customers and by the business, and more.

 

 

ECPAs when providing Bookkeeping will enable your enterprise to:

  • Set up accounting systems and software properly
  • Enter transactions
  • Perform checks, reconciliations and end of year processes
  • Ensure they are up to speed with legislative requirements and management reports
  • Undertake payroll duties and compliance
  • Prepare BAS returns, as a registered BAS agent or under the supervision of a registered BAS agent
  • Provide general business administrative support

ECPAs believes that proper bookkeeping gives companies:

  • A reliable measure of their performance.
  • It also provides information on general strategic decisions and a benchmark for its revenue and income goals.

In short, once a business is up and running, spending extra time and money on maintaining proper records is critical.

 

Many small companies don’t actually hire full-time accountants to work for them because the costs are usually higher.  Instead, small companies generally hire a bookkeeper or outsource the job to a professional firm. One important thing to note here is that many people who intend to start a new business sometimes overlook the importance of trivial matters such as keeping records of every penny spent.

Bookkeeping Methods

The two methods of bookkeeping are single-entry and double-entry. Most businesses use the double-entry bookkeeping system where every entry to an account requires a corresponding and opposite entry to a different account. For instance, a $10 cash sale would require posting two entries: a debit entry of $10 to an account called “Cash” and a $10 credit entry to an account called “Revenue.”

 

Traditionally bookkeeping can be done on a spreadsheet or a lined piece of paper. However, ECPAs is providing the bookkeeping service as an automated process and the software provided by ECPAs used also intertwines some components of the accounting process.

The key attributes of on which ECPAs bookkeeper providing service are being a stickler for accuracy and completeness.

ECPAs Bookkeeping service providing tasks

Essentially, bookkeeping means recording and tracking the numbers involved in the financial side of the business in an organized way. It is essential for businesses, but is also useful for individuals and non-profit organizations.

The bookkeeping service provided by ECPAs for a business includes recording all transactions that are related, including but not limited to:

  • Expense payments to suppliers
  • Loan payments
  • Customer payments for invoices
  • Monitoring asset depreciation
  • Generating financial reports

ECPAs when deals with providing bookkeeping service is always keeping in consideration that Bookkeeping and accounting are often heard being used interchangeably, however, accounting is the overall practice of managing finances of a business or individual, while bookkeeping refers more specifically to the tasks and practices involved in recording the financial activities.

Double-entry bookkeeping provided by ECPAs

The double entry system of bookkeeping is based on the fact that every transaction has two parts, which therefore affects two ledger accounts.

Every transaction involves a debit entry in one account and a credit entry in another account. This serves as a kind of error-detection system: if, at any point, the sum of debits does not equal the corresponding sum of credits, then an error has occurred.

 

Bookkeeping options provided by ECPAs

It seems there is no industry that advances in technology has not affected. Bookkeeping is no exception. Bookkeeping used to involve multiple ledgers, then multiple Excel files…essentially an inordinate amount of paper or computer files. Storage quickly becomes an issue and organization can be a challenge.

Technological advances facilitated a move to a computer-based system, with software available to purchase and download to a desktop. Even then, these programs could be costly and slow.

 

 

ECPAs is following the recent updates resulted in continued development that have led to what is available today: 100% online applications, backed up in the cloud, with unlimited storage. This means no downloads and buggy updates, no concern over losing documents due to computer crashes or viruses, and no problems with storage space online or off.

New options have also been opened by the boom of Android and iPhone mobile apps, allowing you to manage your accounting even on the go.