For any growing business, it is important to track and manage the daily transactions. Bookkeeping and accounting often equip business management to make informed decisions. Full-service bookkeeping takes this further by offering support to handle the financial aspect of the business.
In our blog today, we explore what exactly full-service bookkeeping includes.
What are Book-keeping services?
Bookkeeping encompasses recording and organising the transactions and financial data. It includes activities such as classification of accounts, posting entries to ledgers, reconciling ledgers, managing inventory, and tracking accounts receivable and payables.
The bookkeeper’s role is to ensure that the financial transactions are recorded accurately. The full-service bookkeeping includes:
Recording financial transactions:
The core bookkeeping activity starts with recording financial transactions. This involves recording of sales, purchases, receipt, and payments done daily by the business. This further includes accounting of:
- Identification of incomes and liabilities; and expense and assets
- Collection of invoices or bills related to each month
- Classifying the transactions and recording in its proper ledgers
Reconciliations:
One of the key features of bookkeeping is reconciliation of various areas. This includes bank reconciliation, expense reconciliation, VAT reconciliations, etc. These reconciliations are crucial in the early detection of frauds or errors and ensure that the accounting is complete in all aspects.
Managing payables, receivables and tracking of inventory:
Having a strong control over inventories, payables, and receivables ensures that there are no profit leakages related to this area. Full-service bookkeeping often includes managing accounts receivable and accounts payable and tracking inventory. This helps the business to track and follow up on any outstanding receipts, which in turn avoids cash flow problems for the business; paying off the supplier’s dues on time to avoid disruption in services; and performing inventory checks to avoid abnormal losses.
Payroll processing:
Managing payroll could be time-consuming. At the same time, human resources are an important and sensitive factor in operating businesses. Which is why it must be dealt with utmost care. Most of the full-service bookkeeping services may also offer payroll services at additional cost. This allows the management to disburse timely salaries. Professional bookkeeping also assists in managing payroll efficiently.
Read how accounting firms resolve payroll issues.
Financial reporting:
Most of the full-service bookkeeping also take care of the accounting activities, where they offer the management insightful financials, including balance sheets, profit and loss accounts, and cash flows. This equips the management to make informed decisions.
Tax preparation and compliance:
The task of the bookkeeper is not limited to the tax computation alone. He also checks for any new applicability of the legislation to avoid levy of penalties while he performs the below activities:
- Ensuring that the correct VAT is charged for the invoices.
- Issuing tax-compliant invoices
- Checking the eligibility of the claiming of VAT inputs
- Computing the VAT liability
- Filing of VAT returns
- Disbursing the tax liabilities
- Filing for VAT refund, if any
The bookkeeper ensures that the correct VAT is charged for invoices and helps with filing VAT refunds or VAT returns for businesses. Bookkeepers also ensure compliance with VAT regulations.
For more on VAT-related queries, refer to FAQs on UAE VAT.
Compliance with IFRS and industry standards:
Each industry is different in its own way. A full-service bookkeeping provider has the expertise to ensure that the business adheres to the industry standards. He also ensures that the books of accounts are maintained in line with the IFRS.
Forecasting and budgeting:
Along with handling daily bookkeeping tasks, many full-service bookkeeping solutions also provide financial forecasting and budgeting assistance. This service enables business owners to plan for the future by evaluating current financial data and projecting future trends.
Audit support:
If the business undergoes an audit, then professional bookkeeping services can help the management save their time by ensuring that the financial records are in order and can also support the auditors by sharing the workings and reconciliation to prove the true and fairness of the books of accounts.
Though the plain meaning of bookkeeping services is restricted to recording the data, the bookkeeping service providers often handle the responsibility of an accountant by providing end-to-end business solutions. With full-service bookkeeping, business owners gain peace of mind knowing that their finances are in the hands of professionals, allowing them to focus more on growing their business.
Outsourcing these services can save time, reduce the risk of errors, and provide valuable insights into your company’s financial health, helping you make informed decisions for future growth. Outsourcing these services can save time, reduce errors, and provide valuable insights.
Learn more about outsourcing bookkeeping for your business. Many full-service bookkeeping firms also offer payroll management services. Consider the benefits of outsourcing payroll for your business.
You can contact our experts at punith@bclglobiz.com.
