Many small to medium businesses today hire outsourced bookkeeping services to do balance their books. When one thinks of this compared to accountants, one should not be confused. The difference is that the bookkeeping functionality is different from the accountant but it can be fulfilled by the accountant if bookkeepers are unavailable.
Accountants will usually report the management accounts, provide income statements and handle the annual financial statements. Those who record the day by day financial transactions are sometimes called technicians or clerks. They will record receipts, monthly bills and payment thereof, sales of products and purchases of stock.
They may also be responsible to record transactions in the cash book and balance the petty cash of the company. The accountant will prepare items such as the balance sheet and the income statement which comes from the trial balance records captured by the bookkeeper. Many small companies start out as a one-man joint where hiring the permanent services of a bookkeeper is costly.
There are a number of companies in the market that hire out their bookkeeping assistance. These are aimed for small to medium sized business that finds it too costly to hire a permanent employee to fulfil the purpose. As the enterprise is small or medium size, the financial transactions don't need to be processed daily and it would be unnecessary to get someone to come in on a permanent basis.
These companies that subcontract their professional skills are a valuable contribution to the economy especially with the crises that are going on all over the world. Employment is hard to find so these companies hire professional people and provides them with jobs. It is also less costly to the average business man to subcontract to these companies.
Once the businessman has sent through all the daily financial information such as invoices, statements and bills the data will be recorded for him. The professional will record the data into especially built bookkeeping programs such as Pastel, Peachtree or Quickbooks. Once captured, the balances of each book will be calculated.
Security however is a major concern for most companies no matter how small they are. When one entrusts one's financial information to an enterprise, one needs to be sure that the information is protected by the subcontractors. Physical, network and data as well as fraudulent protection are often offered as part of the subcontractor's fee.
There are strict internet policies in place to ensure that no one has access from the outside over the internet to the data. Proper HR policies are followed which include checking the credit profile of a potential employee. Criminal histories, reference checks and checks are done on the person's qualifications.
When new employees are hired, they will be subject to criminal and credit checks. Their qualifications will be verified and references will be obtained. So, the average business owner doesn't need to sit behind a computer late at night trying to work out how the finances are going. The wisest thing to do would be to subcontract outsourced bookkeeping services in order to ensure the peace of mind and financial security of the business owner.
Accountants will usually report the management accounts, provide income statements and handle the annual financial statements. Those who record the day by day financial transactions are sometimes called technicians or clerks. They will record receipts, monthly bills and payment thereof, sales of products and purchases of stock.
They may also be responsible to record transactions in the cash book and balance the petty cash of the company. The accountant will prepare items such as the balance sheet and the income statement which comes from the trial balance records captured by the bookkeeper. Many small companies start out as a one-man joint where hiring the permanent services of a bookkeeper is costly.
There are a number of companies in the market that hire out their bookkeeping assistance. These are aimed for small to medium sized business that finds it too costly to hire a permanent employee to fulfil the purpose. As the enterprise is small or medium size, the financial transactions don't need to be processed daily and it would be unnecessary to get someone to come in on a permanent basis.
These companies that subcontract their professional skills are a valuable contribution to the economy especially with the crises that are going on all over the world. Employment is hard to find so these companies hire professional people and provides them with jobs. It is also less costly to the average business man to subcontract to these companies.
Once the businessman has sent through all the daily financial information such as invoices, statements and bills the data will be recorded for him. The professional will record the data into especially built bookkeeping programs such as Pastel, Peachtree or Quickbooks. Once captured, the balances of each book will be calculated.
Security however is a major concern for most companies no matter how small they are. When one entrusts one's financial information to an enterprise, one needs to be sure that the information is protected by the subcontractors. Physical, network and data as well as fraudulent protection are often offered as part of the subcontractor's fee.
There are strict internet policies in place to ensure that no one has access from the outside over the internet to the data. Proper HR policies are followed which include checking the credit profile of a potential employee. Criminal histories, reference checks and checks are done on the person's qualifications.
When new employees are hired, they will be subject to criminal and credit checks. Their qualifications will be verified and references will be obtained. So, the average business owner doesn't need to sit behind a computer late at night trying to work out how the finances are going. The wisest thing to do would be to subcontract outsourced bookkeeping services in order to ensure the peace of mind and financial security of the business owner.
About the Author:
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