What is accounting and bookkeeping & which company you are going to hire

Summary

A professional accounting and bookkeeping company manages the business books for you. They will save you time and money & prevent you from paying tax penalties. Hence contacting a reliable accounting and bookkeeping company for bookkeeping service is critical for business growth.

Bookkeeping is the first and most crucial phase in any small or big business’s accounting process? You must have up-to-date and accurate financial information as a business owner to make the best business decisions. A double-entry approach is used to record every transaction or event in at least two different nominal ledger accounts. It’s crucial to note, however, that bookkeeping is not the same as accounting. The process of keeping daily financial records is referred to as “bookkeeping.” As a result, bookkeepers collect financial information from which financial statements or books of accounts are produced.

The practice of recording and maintaining track of your company’s financial transactions is known as bookkeeping. Your bookkeepers must create financial reports depending on your company’s operations regularly. These reports show the financial health and success of your business. Well-maintained financial statements are essential since they help you understand your money and, if necessary, apply for a loan. The following are examples of bookkeeping services: 

  • Filing tax returns 
  • Invoicing 
  • Maintaining accounts receivable and payable 
  • Reconciling financial records with bank statements 
  • Making the prospective budget & cash flow analysis
  • Updating the book keeping records for management reporting
  • Monitoring the business performance & reporting the solution 
  • Streamlining the books of accounts for accounting purpose

Accounting, on the other hand, is the process of bookkeepers preparing, reporting, analysing, and summarising financial data. Accounting reports provide a glimpse of the financial health and performance of your firm. A bookkeeper’s responsibility is to provide accountants with correct, up-to-date financial data so they can prepare annual financial reports and tax filings for your business. These accounting reports are used by you, the business owner, and other stakeholders, such as managers, to help them make business decisions.

As a small business owner, you may be unsure whether or not to acquire bookkeeping services and when to do so. You should hire a bookkeeper as soon as possible after starting your business. Several months’ worth of invoices and revenues would otherwise be unrecorded. You should, however, pick accounting and bookkeeping companies in UAE that you can trust. You can get a professional bookkeeper by asking your accountant for a recommendation.

Hiring a bookkeeper that uses the same bookkeeping and accounting software as your accountant is always a good idea. This makes it simple for both parties to communicate data and keep track of records. You should also make sure that the bookkeeper offers online bookkeeping services, which means that all financial statements are available online. In this manner, all stakeholders, including your accountant and bookkeeper, will be able to interact and gain access to your company’s financial data. It is something that can be done at any time, anywhere.

Conclusion:

The pillars of sound financial health are accounting and bookkeeping. Bookkeeping is a fundamental job that organizations must perform meticulously to ensure accurate accounting. As a result, up-to-date accounting contributes to financial stability. You can contact the Escrow Consulting Group immediately if you need a dependable accounting and bookkeeping company for your business in the UAE.

Authors Bio

This article is written by Escrow Consulting Group- a leading accounting and bookkeeping service provider with a Qualified team to provide professional accountancy, bookkeeping & finance services diligently, efficiently & promptly.