Providing Bookkeeping and Accounting Services

Providing Bookkeeping and Accounting Services

Whether performed by company employees or a bookkeeping or accounting firm, all businesses require some degree of bookkeeping and accounting services. Such services provide the basic accounting information needed to prepare income and payroll tax returns, manage operations, and obtain credit. When received timely, the services can contribute significantly to the management of a business.

What are Bookkeeping and Accounting Services?

Bookkeeping and accounting services describe a wide range of services. Generally, bookkeeping and accounting services include:

•      Recording cash receipts and disbursements, accruals, and adjustments to produce a general ledger or trial balance.

•      Preparing financial statements from general ledger or trial balance information.

•      Maintaining accounts receivable or accounts payable ledgers.

•      Calculating depreciation and maintaining fixed asset registers.

•      Processing payrolls.

•      Calculating payroll tax deposits.

•      Preparing payroll tax returns.

•      Summarizing data required for tax returns.

Whether the services are performed by a bookkeeping or accounting firm or company employees depends on each company's needs. For example, a company may have employees maintain accounts receivable and payable ledgers, process payrolls, and make payroll tax deposits. However, the employees may not possess the skills needed to prepare the general ledger, financial statements, or payroll tax returns.

Similarly, how often the services are provided can vary with each company. Businesses with little activity during the year may only need bookkeeping or accounting services annually to assist with tax return preparation. Others may need monthly financial statements to provide to creditors and to monitor financial results.

Examples of such services are as follows:

a.     Preparing financial statements

b.     Preparing a working trial balance.

c.     Processing payroll.

d.     Assisting in adjusting the books of account.

e.     Performing budgeting and forecasting.

f.       Consulting on accounting, tax, and similarmatters.

g.     Preparing tax returns.

h.     Developing and maintaining bankingrelationships.

i.       Helping with 401(k) plans.

j.       Monitoring key business metrics.