Royds Accountancy London Bookkeeping Services
Some individuals assume that bookkeeping is the same as accounting. They assume that keeping a company's books and getting ready its financial statements and tax reports are all a part of bookkeeping. Accountants do not share their view.
Others see bookkeeping as limited to recording transactions in journals or daybooks then posting the amounts into accounts in ledgers. Once the amounts are posted, the bookkeeping has ended and an accountant with a college degree takes over. The accountant can make adjusting entries and then prepare the financial statements and alternative reports.
Our explanation of bookkeeping attempts to supply you with an understanding of bookkeeping and its relationship with accounting. Our goal is to increase your knowledge and confidence in bookkeeping, accounting and business. In turn, we hope that you can become more valuable in your current and future roles.
Choosing Royds Professional Bookkeeping Service
The accounting software has been written so every transaction must have the debit amounts equal to the credit amounts. The electronic accuracy additionally eliminates the errors that had occurred when amounts were manually written, rewritten and calculated. As a result, the debits can continuously equal the credits and therefore the trial balance can always be in balance. No longer will hours be spent searching for errors that occurred in a manual system.
After the sales invoices, vendor invoices, payroll and other transactions are processed for each accounting period, some adjusting entries are still needed. The adjusting entries can involve:
• revenues and assets that were earned, but not yet entered into the software
• expenses and liabilities that were incurred, but not yet entered into the software
• prepayments that are no longer prepaid
• recording depreciation expense, bad debts expense, etc.
The adjusting entries would require you as an individual to work out the amounts and also the accounts. Without adjusting entries the accounting software will be producing incomplete, inaccurate, and maybe misleading financial statements.
Small Business Bookkeeping
Small business bookkeeping and accounting involves the recording of a company's financial transactions. The transactions will have to be known, approved, sorted and stored in a manner so they can be retrieved and given in the company's financial statements and other reports.
Here are a number of examples of some of a company's financial transactions:
• The purchase of supplies with cash.
• The purchase of merchandise on credit.
• The sale of merchandise on credit.
• Rent for the office space.
• Salaries and wages earned by staff.
• Buying equipment for the workplace.
• Borrowing money from a bank.
Naturally we sympathise - after all running a business means that you’re busy...and we’re certain you've got better things to try and do with your time.
Consider outsourcing your bookkeeping and VAT to Royds Accounting Ltd, a small bookkeeping company that provides excellent value for money.
With our bookkeeping service you will have:
• Information you need at your fingertips
• Confidence that the books are correct
• Your accounting prices should cut back, as well kept books = an easier job
• More time to spend on your business
Contact us at Royds Accountancy to find out more about our bookkeeping and accounting services.