If you are any business that is big or small, be it any scale, you will have to know about bookkeeping. 

This is one of the finest ways to manage your accounting. It will help you analyze all the payments, transactions, funds, and transfers. 

It will analyze everything that you do in your business. Now let us go through what bookkeeping is.

What is bookkeeping?

Bookkeeping is recording all your business transactions with proper procedure and organization. 

It is a very prominent part of your accounting. It will make you keep track of and focus on your day-to-day financial transactions. 

Under this procedure, the data is collected, recorded, classified, and organized into every possible term of the business operations. 

It is the collection of the records, reports, in financial statements of your business payment tracking. Under the process, you can find every transaction made for your business.

Necessity and importance of bookkeeping:

So why do you need bookkeeping? Here are a few factors that make bookkeeping necessary and important. 

All the bookkeeping and accounting differ from each other. Bookkeeping is an essential process for your business's financial tracking.

• It will help you to keep track of the receipt of payment bills. This will also include other documentation of your transactions that you need to be made aware of.
• You will have total knowledge of the sales and purchase transactions made for the business, from the business to the business..
• This process will help you to analyze the income-expenditure profit and losses.
• With this process, you can maintain the records, reports, and ledgers periodically from time to time.
• With the information from the financial reports that are gained, you can analyze your business. This will help you make important decisions for the future.

Understanding the Difference between accounting and bookkeeping:

Although accounting and bookkeeping procedures might sound similar, they have definitive differences. 

Bookkeeping is an accounting function. Well, accounting consists of many other services.

Bookkeeping responsibilities include;

• Recording the financial transactions of the business
• Keeping track of the debit and credits in a journal
• Preparing financial statements regarding the available information
• Processing the payroll on the attained analysis

Responsibility for accounting includes;

• Analyzing and preparing the review of the financial statements
• Adjusting the entries
• Performing different types of audits
• Going through the tax returns with relevant files

Benefits of BOOKKEEPING SERVICES IN PUNE

There are significant benefits to bookkeeping. Some of them are as follows

• You will have complete access to all the detailed records. You can also access all the transaction histories
• You can go through the goods, services, wages, and taxes that are being carried out in your business
• You can compare the balance sheet on the income statement to understand your transactions
• You can easily make informed decisions. These will help you in forming your futuristic decision 
• With the different cash flow statements, you can set goals and identify the problems in your business
• You can quickly rectify discrepancies between the financial and recorded statements.
• This process will help you to find out any errors that can be terminated.
• Bookkeeping helps you to attain easy tax preparation. When you compare the internal and the recorded statements, you can identify the avoided or not recorded taxes.
• You can stay current with all your transactions, taxes and other statements.

Understanding the Requirements of Bookkeeping

When you are setting up your bookkeeping system, you have to make sure to use a cash or accrual accounting system. 

You will need the following if it is a small or one-person business or a large one.

Assets

Acids are the properties that the company owns. This can be any inventory or account receivables. 

Acid also includes fixed assets, such as plants, equipment, and land. Reviewing the balance sheet, you can see the acids listed by their liquidity. 

Assets can also be tangible and intangible, where intangible assets will be the customer Goodwill listed on the balance sheet.

Liabilities

Liabilities are company debts to banks, suppliers, and mortgages that are recorded in the balance sheet. 

They can be divided into current liabilities and long-term liabilities. Current liabilities are generally accounts payable. 

Account payable is the money that must be paid to supply banks' credit cards and other loans. 

Long-term will consist of the taxes like sales tax to the federal, state, and social security that is paid quarterly. Long-term liabilities include mortgage loans that are greater than one year.

Equity

In the case of equity, accounts include all the owner's claims against the company. Any business investment in the form is reflected in this.

Assets are the liabilities and equity of the company. With proper balance, you achieve good profits.

Types of bookkeeping

When it comes to the types of bookkeeping, we have two types

• Single-entry bookkeeping

This process is mainly preferred for small startups and small-scale companies. 

These companies have minimal transaction activities. She will have to maintain three pieces of documentation as follows.

1. Cash sales journal - under the solve the basis, records and revenues are included.
2. Cash disbursement journal - include all the business records and expenses
3. Bank statements - it will consist of all the entries that are in the bank statement

• Double-entry bookkeeping 

This practice of record in transactions is done in at least two accounts as a debit or credit. 

Method of bookkeeping is used for the amount of credit it is recorded and the amount of debited recorded. 

It is an advanced process used for enterprises and significant expenses.

Documents for this process required the following

1. Journal entry
2. General ledgers
3. Inventory
4. Cash books
5. Account payable
6. Account receivable
7. Loans
8. Payroll

Here are a few Methods of bookkeeping Services Offered in Pune:

There are two definitive methods of bookkeeping

• Cash-based system

This includes the system of accounting, which records the financial transactions when the payments are made or received. This will analyze the revenue or the income in the accounting period, which are the expenses paid.

• Accrual basis method

This is favoured under the GAAP, the generally accepted accounting principle. It is the record income in the accounted period that is recorded as expenses and earned

Principles of bookkeeping:

We follow certain principles to ensure that the payments and the financial reports that are recorded and organized are systematic. The bookkeeping principles are as follows

• Revenue principle
• Expense principle
• Matching principle
• Cost principle
• Objectivity principle

Role of bookkeepers in BOOKKEEPING SERVICES IN PUNE:

It is generally believed that bookkeepers work on collecting data and keeping entries. 

They foresee that bookkeeping is tied to tax rules and data entries. But in general, the role of a bookkeeper is noticed in data entry and collection. 

A bookkeeper also focuses on futuristic approaches to intake the present transactions. 

Bookkeepers must be properly certified to prepare taxes or file them for taxis. This is a common misconception.

Professional bookkeepers focus on maintaining accurate and precise financial information. 

The role is to provide information that can be understood and discussed through business meetings. 

This will help in attaining good decisions for the future of the company. A bookkeeper manager records the financial details and maintains records of accounts with an accurate approach. 

It is not only just collecting the data, but it is also about connecting the data. With proper analysis, a bookkeeper will be able to tell the whereabouts of the business and its position. 

Bookkeepers are very professional in terms of ensuring your safety and privacy. 

They also collect information regarding payroll, payment processing, companies, expenses, accounts receivable, accounts payable, etc. 

With the proper expertise of the bookkeeper, the transaction is identified and properly categorized.

ESPECIA’s BOOKKEEPING SERVICES IN PUNE:

ESPECIA is a well-known and professional service. We provide you with many services. We ensure your trust and privacy. 

We follow different kinds of methods and technology. We provide you with a VPN security network. 

This will ensure your safety and security regarding business documents and statements. 

We follow a proper and accurate process. We make sure that every inch of the data is collected and analyzed. With ESPECIA, your requirement is made simple.

Conclusion:

To conclude, bookkeeping is a process that keeps track of every financial transaction a business firm makes. 

Right from the opening of the form to the closing of the firm, every transaction is monitored. 

Analyzing account reviews and interpreting data with proper reports in financial information for the business firm. 

Following various methods, types and procedures will be able to achieve an accurate financial statement. 

Effective bookkeeping requires basic accounts and documents. With proper, legal, and honest documents, you can easily form a chart of your bank account. Bookkeeping will make your expenses tracked and analyzed.