What You Need To Know About Bookkeeping
Services in Ottawa
The best way to be successful in business is to focus on the important task, and delegate works that you consider mundane to others. One of these tasks is bookkeeping, which can be outsourced to professional bookkeeping services in Ottawa who are trained in providing financial services. By outsourcing, you wouldn't be caught in the cracks and can focus more on the important task of growing your business.
Importance of Bookkeeping Services
Bookkeeping is a critical aspect of any business. You need regular financial reports on a weekly, monthly, and yearly basis, so you can evaluate on how your company is faring. A professional bookkeeper can help you come up with an accurate picture by recording your daily transactions on sales, purchases, inventories, payroll, receivables, overhead, bank transactions, and many others. In most cases, bookkeeping in Ottawa will crank out the needed financial reports for submission to their clients. But, it is safe to assume that in preparing these reports, they follow the prescribed regulations on Generally Accepted Accounting Principles (GAAP) by having a Certified Public Accountant (CPA) as part of the team.
Outsourcing vs. Direct Employment
Some businesses opt to hire an additional employee when they see the need for an accounting service. It is a business decision on your part, since hiring entails additional overhead expenses on salaries, employee benefits and perks. It can be a better option to work with a bookkeeping agency that offers virtual services. They have the track record, experience, and are updated on the recent developments affecting your industry. Professional fees are fixed, depending on the kind of services that you require.
In addition, they provide valuable services in helping you grow your business by making sound decisions. You can rely on them to give you an accurate financial picture on how your business is doing as compared to other businesses within the industry. Hiring a reliable bookkeeper can have a great impact on your business in terms of planning and future growth. It gives you a clear idea on taxes that you need to pay, meeting the CRA deadline, and the amount of business loans that you can avail of in order to expand.
Bookkeeping Services
A good bookkeeping services can assist you in streamlining the bookkeeping process, help in setting up internal controls, and come up with up-to-date financial reports to help you plan effectively. The services would generally include the following:
---Regular Financial Reports
These include basic financial statements with accompanying analysis: Balance Sheet or a statement of financial position; Income Statement which is otherwise known as the Profit and Loss Report; Statement of Changes in Equity or the Statement of Retained Earnings, and; Cash Flow Statement Report which shows the inflow and outflow of cash over a certain period;
---Maintenance of the General Ledger and Subsidiary Ledgers
The General Ledger (GL) is a chronological listing of all financial transactions of the business. The GL is a summary of all the transaction that is specific for each asset type - asset, liability, equity, and the retained earnings summary. The Subsidiary Ledger (SL) provides the support for the GL accounts, i.e., the Accounts Receivable GL account would have a corresponding detailed SL account of what comprises it.
---Bank Reconciliation
A bank reconciliation report ascertains that the company's records are cross checked with the bank records and any discrepancy is duly accounted for.
Other Bookkeeping Services may include the following:
Other services may include: the filing of monthly, quarterly, and annual taxes; payroll services, inventory monitoring, job costing, and the setting up of the Chart of Accounts for new or existing businesses. Additional services are dependent on your specific needs.
Source from A-Accounting
The best way to be successful in business is to focus on the important task, and delegate works that you consider mundane to others. One of these tasks is bookkeeping, which can be outsourced to professional bookkeeping services in Ottawa who are trained in providing financial services. By outsourcing, you wouldn't be caught in the cracks and can focus more on the important task of growing your business.
Importance of Bookkeeping Services
Bookkeeping is a critical aspect of any business. You need regular financial reports on a weekly, monthly, and yearly basis, so you can evaluate on how your company is faring. A professional bookkeeper can help you come up with an accurate picture by recording your daily transactions on sales, purchases, inventories, payroll, receivables, overhead, bank transactions, and many others. In most cases, bookkeeping in Ottawa will crank out the needed financial reports for submission to their clients. But, it is safe to assume that in preparing these reports, they follow the prescribed regulations on Generally Accepted Accounting Principles (GAAP) by having a Certified Public Accountant (CPA) as part of the team.
Outsourcing vs. Direct Employment
Some businesses opt to hire an additional employee when they see the need for an accounting service. It is a business decision on your part, since hiring entails additional overhead expenses on salaries, employee benefits and perks. It can be a better option to work with a bookkeeping agency that offers virtual services. They have the track record, experience, and are updated on the recent developments affecting your industry. Professional fees are fixed, depending on the kind of services that you require.
In addition, they provide valuable services in helping you grow your business by making sound decisions. You can rely on them to give you an accurate financial picture on how your business is doing as compared to other businesses within the industry. Hiring a reliable bookkeeper can have a great impact on your business in terms of planning and future growth. It gives you a clear idea on taxes that you need to pay, meeting the CRA deadline, and the amount of business loans that you can avail of in order to expand.
Bookkeeping Services
A good bookkeeping services can assist you in streamlining the bookkeeping process, help in setting up internal controls, and come up with up-to-date financial reports to help you plan effectively. The services would generally include the following:
---Regular Financial Reports
These include basic financial statements with accompanying analysis: Balance Sheet or a statement of financial position; Income Statement which is otherwise known as the Profit and Loss Report; Statement of Changes in Equity or the Statement of Retained Earnings, and; Cash Flow Statement Report which shows the inflow and outflow of cash over a certain period;
---Maintenance of the General Ledger and Subsidiary Ledgers
The General Ledger (GL) is a chronological listing of all financial transactions of the business. The GL is a summary of all the transaction that is specific for each asset type - asset, liability, equity, and the retained earnings summary. The Subsidiary Ledger (SL) provides the support for the GL accounts, i.e., the Accounts Receivable GL account would have a corresponding detailed SL account of what comprises it.
---Bank Reconciliation
A bank reconciliation report ascertains that the company's records are cross checked with the bank records and any discrepancy is duly accounted for.
Other Bookkeeping Services may include the following:
Other services may include: the filing of monthly, quarterly, and annual taxes; payroll services, inventory monitoring, job costing, and the setting up of the Chart of Accounts for new or existing businesses. Additional services are dependent on your specific needs.
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