Maintaining a record of a company's financial transactions is known as bookkeeping. Organising balance sheets, income statements, and other essential finance-related statements for a business are the tasks it deals with. 

Companies can track any form of growth or regress by receiving real-time reports on their condition of finance from professional Bookkeeping Services in Chennai. 

A bookkeeper is somebody who ensures that all of a company's financial information is accurate and organised. Additionally, it gives the organisations a sense of their current economical situation.

Chennai, formerly known as Madras, is the capital of Tamil Nadu. Its roots have a deep history since time immemorial. 

Its location and ongoing development make it a perfect place for any kind of business. 

Financial management is interlinked with each business. Hence, it is necessary to manage financial data properly and efficiently. 

Are you interested to learn more about bookkeeping? Do you want to know where to avail the best services from? Read ahead to know more.

What Functions Does Bookkeeping Serve?

An enterprise can maintain a catalogue of its present financial situation by opting for bookkeeping services. 

It provides information on performance and aids a business in making crucial choices on operations, investments, and other financial decisions. 

Knowing the organisation's present financial situation might assist it in deciding which important areas need the most attention. 

It helps in handling the taxes at the end of each financial year. You can concentrate on other areas of development once you can ensure that all of your key paperwork, along with incoming and outgoing assets, are managed effectively. Therefore, bookkeeping can benefit your business in both indirect and direct ways.

What kinds of Services does a bookkeeper offer?

A bookkeeper is capable of handling all of your financial needs. Let's dig further into details about the duties that he/she is expected to carry out-

• Taking care of the payables

It may sound annoying to have many files containing invoices from several providers. It's crucial to pay all your bills on time and to keep track of their due dates. With the help of a bookkeeper, you no longer need to stress about categorising and processing payments. 

• Taking care of the receivables

What kind of revenue does your firm produce? Are you certain that your customers pay their invoices within the given time? To maintain a seamless operation of your company, you must have explanations for these questions. A bookkeeper ensures that each and every incoming asset is noted and tracked. Additionally, it is their responsibility to contact clients who owe you money.

• In charge of payrolls

You may have to spend a lot of time processing payrolls. It might be challenging to pay several workers while taking into account aspects like overtime. Additionally, you must ensure that all payments are completed with the most recent information related to taxation. Also, a bookkeeper can administer your employees' timely payments.

• Creating and/or Revising the Financial Statements

A bookkeeper assists an organisation with various significant financial reports. Some of them are-

• A company's numerous incoming and outcoming expenses are listed in a statement of cash flow.
• Loss / Profit Statement: An organisation's earnings and loss are calculated by comparing its income with its operating expenses.
• A balance sheet is a summary of a company's assets, equity and liabilities that shows the costs and revenues for a specific period.
• Controlling Taxes

It's crucial to complete all your taxation work on time. Taxes are a burden for any firm, including small business owners. It's essential to properly file your ITR by the end of each fiscal year. A bookkeeper can handle everything, including handling tax statements and eventually clearing them out.

• Internal Control

It is the process of assessing the internal patterns, controls, and methodologies used by an association to have efficient procedures for work. Also, it is crucial for risk management.

Bookkeeping Methods

The main categories of bookkeeping are: 

• Single entry bookkeeping

Single-entry bookkeeping, as the name implies, only records every transaction once. 

A company's revenue and outlays are usually listed in a single row. Positive values are used to indicate revenue, whereas negative values are used to indicate expenses. 

For small enterprises with moderate amounts of transactions, single-entry bookkeeping is practical. It is useful for cash flow reports that are provided daily or monthly.

• Double-entry bookkeeping

It involves mentioning a company's financial transactions twice in different rows. Debits and credits are given their own rows. To balance the expenses and assets, each input needs an opposite entry. Double-entry bookkeeping ensures an accurate inventory record for an organisation.

Accounting vs Bookkeeping

It is possible to classify bookkeeping as a crucial area of accounting. While the process of accounting uses the data to interpret, evaluate, analyse, summarise, and ultimately convey conclusive transactions for a firm, bookkeeping works with gathering and managing this financial data. 

Input from bookkeeping is used in the accounting process, which helps in briefing financial health and making decisions.

Comparing cash basis and accrual accounting

To correctly implement bookkeeping services, a company must carefully consider the sort of accounting they will use.

When a payment is made or received, the financial transaction is recorded under the cash basis of accounting. 

Contrarily, accrual accounting documents the economic transaction as soon as it takes place. It does consider whether the money is paid or received.

With the support of an example, it will be simpler to understand. Presume that you have purchased 100 units of some product from an organisation and have settled to disburse the payment for it the following week.

Since no payment has been made or received, no transaction will get recorded under cash basis accounting in this situation.

With accrual accounting, a financial transaction will get cited in the book of accounts as the liabilities of a company.

What industries require Bookkeeping Services in Chennai?

Competent financial management is a prerequisite for any other organisation in the current environment. 

To manage and track the financial data, any corporation, professional, a trader on the stock market or consultant would want outside assistance. 

Depending on each of these individuals' needs, a bookkeeper can assist them in various ways. These services could consist of the following:

1. Upkeeping of a ledger
2. Handling invoices
3. Getting income statements ready
4. Creating ageing reports and financial statements
5. Balancing of financial accounts
6. Services correlated with AR/AP
7. Proper management of the journal entry services

We now have a better understanding of what bookkeeping actually is and why it is important. 

It takes skill to properly manage an organisation's financial data, which is a delicate operation. 

Are you trying to decide which outside service provider will provide you with the best? ESPECIA is going to be the right choice!

Why ESPECIA?

For more than ten years, ESPECIA has provided high-calibre assistance in the field of finance. 

Members of our skilled and certified professional staff are experts in diverse fields of finance. 

Over 2,000 of our clients are pleased and satisfied. We provide a wide range of services, including outsourcing, bookkeeping, ESOP, valuation, and advising services, among many others. ESPECIA offers a cost-effective one-stop solution for all of your financial requirements.