Overview of Accounting and Bookkeeping Services

Following are the advantages of bookkeeping as mentioned below:

Time Saving

By outsourcing bookkeeping tasks, customers can save valuable time that can be better utilised for core business activities. They can focus on growing their business and serving customers instead of spending hours on financial record-keeping.

Accuracy and Compliance

One of the main elements of bookkeeping is maintaining accurate and up-to-date financial records and ensuring that all transactions are recorded correctly, reducing the risk of errors and discrepancies and help businesses stay compliant with tax regulations and other financial obligations.

Financial Transparency

Bookkeeping services provide customers with clear visibility into their financial health. They receive regular reports and statements that outline their income, expenses and overall financial position. This information helps them make informed business decisions and identify areas for improvement.

Cost Efficiency

Instead of hiring and training in-house bookkeepers, relying on experienced professionals who provide services at a fraction of the cost saves money on salaries, benefits and office space.

Business Insights

Bookkeepers can analyse financial data and provide valuable insights to customers. They can identify trends, patterns and potential cost-saving opportunities. These insights empower customers to make strategic decisions that improve profitability and growth.

Scalability

Bookkeeping services can easily scale with the customer's business. As the business grows, the bookkeeping service can adapt and handle increased transaction volumes and complexity. This scalability eliminates the need to worry about outgrowing internal bookkeeping resources.

Expertise and Support

Customers benefit from the expertise and guidance of professional bookkeepers. These professionals stay updated on the latest accounting rules and regulations, ensuring that customers receive accurate and relevant advice. They can also provide support during tax audits or financial assessments.

Overall, bookkeeping services offer customers the convenience, accuracy and expertise needed to effectively manage their financial records and make informed business decisions.

What is the Role of Bookkeeper?

A bookkeeper's role goes beyond data entry and tax rules. The bookkeeper also handles tasks such as managing deposits, payroll, developing financial statements, reconciling bank statements and assisting with audits. Alongside, he also focuses on enhancing financial accountability by having a controller scrutinise the bookkeeper's ledger for accuracy. The controller maintains the integrity of the accounting file, preventing unauthorised adjustments. They prepare monthly financial reports to identify any issues that need attention.

They are responsible for the following:

• Accurately recording and managing a company's financial transactions, including income, expenses, assets and liabilities.
• Maintaining a systematic record-keeping system to ensure all financial information is properly organised and easily accessible.
• Tracking and monitoring all financial transactions, including sales, purchases, payments and receipts, to maintain an accurate and up-to-date financial record.
• Conducting regular bank reconciliations to ensure that the company's bank account balances align with the recorded transactions.
• Categorising and classifying individual transactions based on specific accounts, such as revenue, cost of goods sold, accounts payable and accounts receivable.
• Identifying and rectifying any errors or discrepancies in financial records through careful review and reconciliation processes.
• Keeping detailed records of expenses, including receipts and invoices, to support accurate expense reporting and ensure compliance with tax regulations.
• Managing payroll processes, which may involve calculating employee salaries, deducting taxes and other withholdings and ensuring timely and accurate payments to employees.
• Assisting in the preparation of financial statements, such as income statements, balance sheets and cash flow statements, to provide an overview of the company's financial performance.
• Collaborating with accountants and auditors to provide necessary financial data and documentation during audits or financial reviews.
• Generating various financial reports, such as profit and loss statements, cash flow forecasts and aging reports, to assist decision-makers in evaluating the company's financial health.
• Providing relevant financial information and insights to decision-makers, including management and stakeholders, to support strategic planning and informed decision-making.
• Offering financial training and guidance to employees, promoting financial literacy within the organisation and ensuring adherence to financial policies and procedures.
• Assisting in budgeting and cost control activities, helping to identify areas for cost savings and efficiency improvements.
• Ensuring compliance with accounting principles, standards and regulatory requirements, including tax laws and financial reporting guidelines.
• Collaborating with tax professionals to assist in tax preparation, ensuring accurate and timely filing of tax returns and adherence to tax regulations.
• Providing financial information and statements to potential partners, investors and stakeholders to support due diligence processes and attract investment opportunities.

What are the Types of Bookkeeping Services?

There are numerous types of bookkeeping services, some of which have been mentioned below:

Virtual Bookkeeping Services

These services involve managing your financial records remotely, providing assistance with tasks such as data entry, categorisation of transactions and generating financial reports, all without the need for physical presence.                                

CPA Bookkeeping Services

Certified Public Accountants (CPAs) offer comprehensive support, including maintaining accurate financial records, preparing tax documents and providing expert financial advice.

Accounting Setup Services

These services focus on setting up the accounting system for your business, including creating charts of accounts, establishing proper recording procedures and implementing software to streamline financial processes.

GST Compliance

This service ensures that your business complies with GST regulations. It involves accurately calculating and reporting GST obligations, filing GST returns and maintaining proper records for GST audits.

Income Tax Compliance

This service helps ensure compliance with income tax laws and regulations. It involves preparing and filing income tax returns, identifying eligible deductions and credits and staying updated on changes in tax legislation.

FEMA Compliance

FEMA (Foreign Exchange Management Act) compliance services assist businesses in complying with foreign exchange regulations. This involves proper reporting of foreign transactions, adhering to restrictions on foreign investments and fulfilling documentation requirements.

Reporting

Reporting services involve preparing and distributing various financial reports to key decision-makers within the organisation. They are useful in providing insights into the business's performance and include reports like general ledger reports, financial statements, bank reconciliation reports, accounts payable and receivable reports etc.

Audit

This involves a thorough examination of a company's financial records which will include balance sheet, income statements and cash flow statements.

Internal Audit

Help in examining organisation's internal processes and practices to assess their effectiveness and identify risks, ensure compliance with regulations and evaluate the efficiency of operations within the organisation. 

Treasury Management

Treasury management services focus on managing an organisation's financial assets, investments and cash flow. The goal is to minimise operational and financial risks while optimising liquidity. These services involve effectively managing cash flow, receivables, payables and interest rates.

Each of these services plays a crucial role in ensuring accurate financial records, regulatory compliance and informed decision-making for businesses.

Who is Eligible for Accounting and Bookkeeping Services?

Following entities are eligible and can opt for bookkeeping services:

• Consultants and professionals, such as lawyers, doctors, architects or consultants in various fields, who need accurate and organised financial records to manage their business finances effectively.
• Share market traders, including individuals or entities engaged in buying and selling stocks, securities or other financial instruments, who require proper bookkeeping to track their investment activities and calculate gains or losses.
• Goods traders, which can include retailers, wholesalers, distributors or manufacturers, who need to maintain detailed records of purchases, sales and inventory to track their business transactions, monitor profitability and comply with tax regulations.
• Individual freelancers, such as writers, designers, programmers or independent contractors, who need to keep track of their income, expenses and invoices for efficient financial management and to fulfill tax obligations.
• Startups and small businesses: Bookkeeping services can help startups and small businesses establish a solid financial foundation, track cash flow, manage expenses and prepare accurate financial statements.
• Non-profit organisations: Non-profits require proper bookkeeping to ensure transparency and accountability in managing funds, tracking donations and reporting financial activities to stakeholders and regulatory authorities.
• Professional service firms: Accounting and bookkeeping are essential for professional service firms, such as marketing agencies, consulting firms or IT companies, to manage project finances, track billable hours and prepare invoices for clients.
• Real estate agents and property managers: Individuals or companies involved in real estate transactions or property management can benefit from bookkeeping services to track rental income, expenses and property-related financial activities.

The following documents are must in order to enable bookkeeping:

General accounts bank statements with cancelled cheques Similar to trust accounts, bank statements and cancelled cheques for general accounts are essential for tracking business transactions and ensuring accurate financial records.

Invoices to clients Invoices issued to clients are crucial for recording sales, tracking payments and calculating revenue. They provide details of the services or products provided, along with the agreed-upon prices.

Bills from suppliers Bills or purchase invoices received from suppliers form the basis for recording expenses and tracking accounts payable. These documents contain information about the goods or services purchased and the amount owed.

Bank deposit slips/book Bank deposit slips or a deposit book is required to record all cash and check deposits made into the business's bank account. These slips provide proof of income and ensure proper tracking of revenue.

Credit card statements and receipts Credit card statements and corresponding receipts are necessary for tracking business expenses made using credit cards. They help in reconciling credit card transactions and ensuring accurate expense recording.

Cash expense (out-of-pocket expenses) receipts Receipts for petty cash purchases or out-of-pocket expenses are important for maintaining accurate records of business expenditures as they serve as proof of payment and support expense claims.

Merchant account statements (if accepting credit cards) If the business accepts credit card payments from clients, merchant account statements are required. These statements provide a record of credit card transactions processed and the corresponding funds deposited into the business's bank account.

The process of bookkeeping usually involves the following steps as mentioned below: 

Initial Consultation

Meet with a bookkeeping service provider to discuss your specific needs and requirements. This step helps them understand your business and tailor their services accordingly.

Agreement and Documentation

You will receive an agreement after the consultation is done which will outline the terms, scope of work and fees associated with the bookkeeping services. Review it and sign the agreement if you agree to proceed.

Providing Financial Documents

Gather and provide the necessary financial documents to the bookkeeping services. Relevant records include bank statements, receipts, invoices, etc. and should be organised and easily accessible.

Data Entry and Organisation

The bookkeeping service will enter the financial data from the provided documents into their accounting software. They will organise the data in a systematic manner, ensuring accuracy and completeness.

Categorisation and Classification

The bookkeeper will categorise and classify the financial transactions based on their nature and purpose. This step helps generate meaningful reports and enables better financial analysis.

Reconciliation

The bookkeeper will reconcile your bank accounts, credit card statements and other financial records with the entries in the accounting software. This process identifies any discrepancies or errors and ensures the accuracy of the financial data.

Financial Reporting

The service will generate regular financial reports including profit and loss statements, balance sheets and cash flow statements.

Ongoing Support and Review

The bookkeeping service will provide ongoing support and guidance regarding your financial records by answering your questions, addressing any concerns and offer insights.

Tax Preparation Assistance

During tax season, the bookkeeping service can assist you in preparing the necessary financial statements and documents required for filing your taxes. This ensures compliance with tax regulations and helps maximise your tax deductions.

Periodic Reviews

It is advisable to periodically review your financial records with the bookkeeping service as it can identify potential issues, spot trends and make adjustments to financial strategies if needed.

Each bookkeeping service may have its own specific process, so it is important to discuss these details with the provider. StartupFino, with its team of trained professionals can help you align the process and ensure necessary steps along the way.

A reliable bookkeeping service should provide a comprehensive and accurate overview of the company's financial structure every month. This information is significant for gaining insights into the company's financial health and developing strategies to maintain and improve it.

Startupfino is a company that specialises in offering complete services for accounting and bookkeeping. We can help you with everything from providing advice in the initial phase to ensuring that you meet all the necessary requirements and compliances. 

Our accounting and bookkeeping services include the following:

• Comprehensive accounting and bookkeeping services, providing accurate financial records and ensuring compliance with regulations.
• Simplify your financial management with our professional accounting services, allowing you to focus on growing your business.
• Our experienced team provides tailored bookkeeping solutions, helping you streamline financial processes and make informed decisions.
• From tax preparation to payroll management, our accounting services cover a wide range of functions, ensuring organisational efficiency.
• Take the hassle out of financial management with our reliable accounting services, giving you peace of mind and the freedom to focus on your core business.

By availing our services, entrepreneurs can avoid the negative outcomes of non-followance of rules and compliances. StartupFino works hard to provide services that are prompt and effective, so you can manage your business without any issues and without facing penalties or problems.