If one is interested in making use of his accountancy degree in order to open up a business, then one thing that he can do is to create a firm that gives bookkeeping and accounting services. Now the type of clientele that this firm would target would be the businesses that would want a professional accountant to help their resident account or for those businesses who need financial statements made by a professional.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Of course aside from that, he will also have to work with the ledger accounts. After the journal entries have already been made, then the next thing to do would be to make the ledger accounts. Of course the contractual accountant will also have to check the work of this resident accountant in order to prepare the documents for auditing.
Now the trial balance is the report that would is the indicator as to whether all accounts are balanced and is the report that prepares the accountant for the creation of financial statements. Of course the contractual bookkeepers are the ones who will make the financial statements already. They are the ones who know how to properly make these statements and how to present them.
Now the very first financial statement that the bookkeeper would be making would be none other than the income statement. Basically, the income statement is the statement that would compare the income that the company made as compared to the expenses. Now if the income is shown to be higher than the expenses, then the company made a net income, but if it is the opposite, then the company incurred a loss.
Now after the creation of the income statement, then they will be creating the statement of changes in equity. Basically, this would be the statement that would show the changes with regard to the capital of the business. It includes the capital, net income, withdrawals, and additional investments.
The very last statement that will be made will be the balance sheet. The balance sheet is the most crucial of all the three because it will show how well the company is doing. Basically, it would showcase the assets as compared to the liabilities and the equity of the owner.
Once all of the financial statements has been made, then the contractual accountant will examine each document before auditing. Basically, they will be the ones who will provide all the necessary bookkeeping and accounting services so that the company is ready for the audit. That is the main purpose of hiring a worker from a firm that would actually provide this kind of service.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Of course aside from that, he will also have to work with the ledger accounts. After the journal entries have already been made, then the next thing to do would be to make the ledger accounts. Of course the contractual accountant will also have to check the work of this resident accountant in order to prepare the documents for auditing.
Now the trial balance is the report that would is the indicator as to whether all accounts are balanced and is the report that prepares the accountant for the creation of financial statements. Of course the contractual bookkeepers are the ones who will make the financial statements already. They are the ones who know how to properly make these statements and how to present them.
Now the very first financial statement that the bookkeeper would be making would be none other than the income statement. Basically, the income statement is the statement that would compare the income that the company made as compared to the expenses. Now if the income is shown to be higher than the expenses, then the company made a net income, but if it is the opposite, then the company incurred a loss.
Now after the creation of the income statement, then they will be creating the statement of changes in equity. Basically, this would be the statement that would show the changes with regard to the capital of the business. It includes the capital, net income, withdrawals, and additional investments.
The very last statement that will be made will be the balance sheet. The balance sheet is the most crucial of all the three because it will show how well the company is doing. Basically, it would showcase the assets as compared to the liabilities and the equity of the owner.
Once all of the financial statements has been made, then the contractual accountant will examine each document before auditing. Basically, they will be the ones who will provide all the necessary bookkeeping and accounting services so that the company is ready for the audit. That is the main purpose of hiring a worker from a firm that would actually provide this kind of service.
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You can visit pbsmanagementservices.org for more helpful information about Providing Bookkeeping And Accounting Services.
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