Bookkeeping is the process of collecting, classifying, summarizing, recording and interpreting financial records to give a snapshot of a company’s economic activity. Depending on the nature of the company and its activities, it is pertinent for small businesses to have bookkeeping services done. It is essential to have a well-organized financial system that allows businesses to effectively function, as well as plan future goals.
In order to assist small businesses in growing their business, they should consider hiring a Houston accountant. This will help them organize all funds and financial documents into one place instead of scattered throughout different files and folders.
Here are the common bookkeeping services required by small businesses.
- Inventory management
Inventory management is the process of recording, classifying, and providing a complete overview of all the materials being used in a firm’s business. For this purpose, it needs to be done during the period in which products are being bought, produced, or sold. A good bookkeeper will help the company conduct good inventory management records, which will ultimately help them save time for redo processes and procedures.
- Payroll processing
Payroll processing is the process of collecting and putting together receipts from different parts of the company. This is a very important process since it is expected to have accurate information on all employees’ salaries, deductions, amounts being withheld, and other payment transactions.
- Bank reconciliation
Bank reconciliation is the process that involves the verification of all transactions done with a bank as well as all deposits of funds into a bank account. This is important to ensure that all bank records are in line with the financial records or documents of the company.
- Bookkeeping clean up
Bookkeeping cleanup is the process of removing obsolete, duplicate, or outdated records from a company’s bookkeeping system. This will prevent later confusion and miscommunication.
- General ledger
A general ledger is a general and complete record of all financial transactions. For example, it shows all sales, purchases, income, and expenses. It also includes bank accounts, receipts, obligations, and funds being held.
- Accounts payable
Accounts payable is the process of recording transactions of all things owed by the firm to different suppliers, creditors, etc. for services, materials, and products that have already been used.
- Accounts receivable
Accounts receivable is the process of recording transactions involving money owned by people or companies who do not pay on time or even fail to pay at all. It helps to keep track of the date when a payment was due and if a payment has been made or not yet.