Book keeping and accountancy services are essential functions that help businesses to manage their financial records and operations. These services involve a variety of tasks and responsibilities, which are outlined below.
Bookkeeping: Bookkeeping is the process of recording and maintaining financial transactions in an accurate and organized manner. This includes tasks such as recording sales, purchases, and payments, as well as reconciling bank statements and maintaining ledgers.
Bookkeeping tasks includes:
- Recording financial transactions on a daily basis, such as sales and purchases
- Maintaining accurate records of financial transactions in a systematic manner
- Balancing and reconciling bank statements and financial records
- Providing accurate and up-to-date financial information to management and other stakeholders
- Preparing and maintaining ledgers, journals, and other financial records
Accountancy: Accountancy is the process of interpreting, analyzing, and reporting financial information to management and other stakeholders. This includes tasks such as preparing financial statements, developing budgets, and providing financial analysis.
Accountancy tasks includes:
- Interpreting and analyzing financial information
- Preparing and presenting financial statements, such as balance sheets, income statements, and cash flow statements
- Developing budgets and forecasting financial performance
- Providing financial analysis and advice to management and other stakeholders
- Complying with statutory and regulatory requirements
- Making sure the data is accurate and up-to-date, it also includes preparing of tax returns, submitting VAT and other statutory compliance.
Both bookkeeping and accountancy services are important for the smooth running of a business, they provide the accurate and timely financial information that businesses need to make informed decisions and plan for the future. It is also important to note that most small businesses outsource these services to professional accountants or bookkeepers to ensure that their financial records are accurate and up-to-date.
In conclusion, bookkeeping and accountancy services are essential functions that help businesses to manage their financial records and operations. Bookkeeping involves recording and maintaining financial transactions, while accountancy involves interpreting, analyzing, and reporting financial information. Both services are important for the smooth running of a business and provide the accurate and timely financial information that businesses need to make informed decisions and plan for the future. It’s important for small businesses to have access to these services to run the business efficiently, and for this reason, many small businesses outsource these services to professional accountants or bookkeepers.
