Bookkeeping services play an important role in the financial health of a business. By recording all financial transactions, bookkeeping allows businesses to keep track of their expenses and income, as well as their current financial position.
This information is used to compile reports that assist business owners in making sound financial decisions. Bookkeepers can also provide advice on ways to improve the financial performance of a business.
So if you are a business owner looking to outsource bookkeeping and need more about it, this post is for you. We got in touch with Adam Valdez, an accountant in San Antonio, Tx to find out what bookkeeping means.
What is Bookkeeping?
The definition of bookkeeping is the recording of financial transactions in journals and ledgers. Transactions can be in the form of income, expenses, assets, liabilities, and owner’s equity. They are usually recorded using a double-entry system where every transaction gets reflected in two ledger accounts.
For eg. income received from a sale will be recorded in the sale and cash account. If sold on credit, it will reflect in the sale and debtor account.
The purpose of bookkeeping is to provide information that is useful in making business decisions. Suppose you wish to track all your account receivables or account payables or find out how much revenue was generated in a given time, bookkeeping can help with all.
Based on this information, you can reconcile your bank accounts, make business plans, set targets, and even file taxes properly.
Bookkeeping services also include the preparation of financial statements(like p&L, balance sheets, and cash flow), monitoring trends, performance indicators, and handling invoices.
Who Provides Bookkeeping services?
Larger businesses often have an accounting department where they hire full-time bookkeepers to track the large volume of transactions that occur every day. But for most medium to small businesses and even solopreneurs, outsourcing this task is a great idea.
Bookkeeping services are provided by CPAs who are professional accountants that have the training and experience to maintain accurate records for a business. They provide confidentiality to all their clients and can even advise them on various financial matters.
CPAs also know various tax and labor laws so can ensure your business and book of accounts follow the laid out regulations. And unlike regular bookkeepers, they can also provide various accounting services like audit, tax planning, filing, payroll processing, etc.
Should You Hire Bookkeeping Services?
As a business owner, you have limited time and resources. So you can either hire a full-time bookkeeper or outsource bookkeeping services to a CPA firm. The latter saves you money and office space that you can allocate to more productive areas of business.
If you need to outsource bookkeeping services in San Antonio, reach out to Adam Valdez CPA. It is a third-generation accounting firm that specializes in working with small to medium-sized businesses. They offer bookkeeping, taxation, estate planning, and even payroll services to their clients. So if you live in San Antonio or nearby areas, call up Adam Valdez’s CPA office or visit their website to schedule a consultation right away.
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