Bookkeeping is a vital business activity. Every business needs to focus on managing its books correctly to make important business decisions. Small business owners are also not exempted from maintaining the financial records of their companies. They can either manage the books of accounts themselves or outsource bookkeeping services in Mississauga based on their needs. Nevertheless, acquiring bookkeeping services from an accounting firm like GTA Accounting can aid business owners in focusing on their core business tasks, with the proper management of their books from professionals.
Besides, there are different bookkeeping services that small businesses can outsource. When outsourcing bookkeeping services from a professional accounting firm, business owners should expect the fulfilment of certain requirements.
What Small Businesses Should Expect from Bookkeeping Services That Professionals Provide Them
There are different bookkeeping services that accounting firms provide SMBs via outsourcing. Business owners who avail of such services should also expect to fulfill certain requirements from accounting firms. Let’s discuss those services and what to expect from professionals who provide bookkeeping services one by one:
Bank Reconciliation:
One of the bookkeeping services is bank reconciliation. Bank reconciliation helps a business know the difference between its cash balance as per the monthly bank statement of the account alongside the company’s cash balance according to its books at a particular date, which is typically the end date of the statement of account. Business owners should expect bookkeeping service providers to check the bank and company records accurately via bank reconciliation.
Trial Balance Sheet:
Trial balance sheets are also important for businesses and a part of bookkeeping activity. A trial balance is an accounting worksheet which bookkeepers have to check to ensure accounting balances are mathematically correct. You should expect a bookkeeping service provider to check the trial balance properly for you. Besides, the trial balance is an important document for business to base their decisions on.
Preparing the Financial Statements:
Another bookkeeping service that bookkeeping service providers render is the preparation of financial statements. Business owners have to use financial statements for internal decision-making purposes. Financial statements are vital documents for businesses to realize their financial position. Business owners can make economic business decisions based on their financial statements.
Further, financial statements are useful for stakeholders of the company, such as employees, creditors, suppliers, government, etc. Moreover, it is important for a bookkeeping service provider to issue a report to the business when they share business financial statements outside the business. A business should expect credibility from an accounting firm regarding financial statement preparations which offers bookkeeping services in Mississauga.
General Ledger Maintenance:
The maintenance of the general ledger is also what bookkeeping service providers do for businesses. A general ledger is also the heart of the company’s financial records. Bookkeepers have to record, classify, and summarize important financial data into the general ledger for a business. A general ledger also serves as a basis for the preparation of trial balance and financial statements. A business should expect a bookkeeping service provider to ensure the proper maintenance of a general ledger.
Managing Accounts Receivables and Accounts Payables:
Managing accounts payables and accounts receivables is also important for a business to maintain its books properly. Accounts receivables include the list of unpaid transactions of the company’s customers. Additionally, accounts payables include the list of unpaid transactions that the company owes to its suppliers. Businesses should expect regular updating of accounts payables and receivables from a bookkeeping service provider they outsource the service from.
Payroll Processing:
Payroll processing is also an important bookkeeping service. Payroll services must include accurate tax deductions and payments to the other agencies. Calculations of bonuses and deductions are also a part of payroll processing. Businesses should expect effective management of payroll from a bookkeeping service provider they outsource this service from.
These are the core bookkeeping services that accounting firms provide to businesses in Mississauga. Moreover, startups and small business owners should outsource bookkeeping services from an accounting firm while keeping the following in mind:
- What bookkeeping services do they need?
- Is the bookkeeping service provider present near their business location?
- How affordable and credible is the bookkeeping service provider?
Conclusion
Bookkeeping is an important business activity that companies need to focus on to effectively manage their books of accounts and make the best financial decisions based on it. Small business owners can outsource various bookkeeping services in Mississauga from an accounting firm. Nonetheless, they should also ensure the meeting of certain requirements from a bookkeeping service provider. Here is what businesses should expect from bookkeeping service providers for different bookkeeping services:
- Bank Reconciliation: Expect bookkeeping service providers to accurately check the bank and company records via bank reconciliation.
- Trial Balance Sheet: Expect a bookkeeping service provider to check the trial balance properly.
- Preparing the Financial Statements: Expect credibility from an accounting firm regarding financial statement preparations.
- General Ledger Maintenance: Expect a bookkeeping service provider to ensure the proper maintenance of a general ledger
- Managing Accounts Receivables and Accounts Payables: Expect regular updating of accounts payables and receivables from a bookkeeping service provider
- Payroll Processing: Expect effective management of payroll from a bookkeeping service provider.
