If one would have a degree in accountancy, then he can actually put up his own firm that would provide bookkeeping and accounting services. Basically, if a business does not have an efficient accountant or bookkeeper, then they could always hire one from a firm that provides this kind of service. For those who are interested in this type of field, here are some things that have to be done.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
Of course after he has already checked all the journal entries and the ledger accounts, then he may make the trial balance. This has to be done before he would make the financial statements as the three financial statements are the most important documents to an accountant. So basically, the contractual accountant would be making these financial statements for the client.
Of course they will start the process by making the income statement. This is the statement that would actually show how much income the company has made and how much expenses that the company has incurred as well. So basically, the income will be subtracted to the expenses and if the income will be higher, then the company would have made a net income.
Now after the creation of the income statement, then they will be creating the statement of changes in equity. Basically, this would be the statement that would show the changes with regard to the capital of the business. It includes the capital, net income, withdrawals, and additional investments.
Lastly, the bookkeeper would be making the statement of financial position which shows the assets versus the liabilities and equity. Basically, all of the accounts will be present in this statement. This is known to be the most important of all statements as it is the one that will show whether a business is doing well or not.
Once all of the financial statements has been made, then the contractual accountant will examine each document before auditing. Basically, they will be the ones who will provide all the necessary bookkeeping and accounting services so that the company is ready for the audit. That is the main purpose of hiring a worker from a firm that would actually provide this kind of service.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
Of course after he has already checked all the journal entries and the ledger accounts, then he may make the trial balance. This has to be done before he would make the financial statements as the three financial statements are the most important documents to an accountant. So basically, the contractual accountant would be making these financial statements for the client.
Of course they will start the process by making the income statement. This is the statement that would actually show how much income the company has made and how much expenses that the company has incurred as well. So basically, the income will be subtracted to the expenses and if the income will be higher, then the company would have made a net income.
Now after the creation of the income statement, then they will be creating the statement of changes in equity. Basically, this would be the statement that would show the changes with regard to the capital of the business. It includes the capital, net income, withdrawals, and additional investments.
Lastly, the bookkeeper would be making the statement of financial position which shows the assets versus the liabilities and equity. Basically, all of the accounts will be present in this statement. This is known to be the most important of all statements as it is the one that will show whether a business is doing well or not.
Once all of the financial statements has been made, then the contractual accountant will examine each document before auditing. Basically, they will be the ones who will provide all the necessary bookkeeping and accounting services so that the company is ready for the audit. That is the main purpose of hiring a worker from a firm that would actually provide this kind of service.
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