A vital part of running any business, no matter its size, is logically recording all relevant data. This allows the organization to track their financial data if ever needed and helps prepare financial statements too.
In the past, businesses would have a dedicated accounting department that would take care of all these things. However, as outsourcing became more popular, entrepreneurs found it would be best for the business to stick to its operations and employ a third party to take care of bookkeeping.
What is bookkeeping?
Bookkeeping is considered the first step in the accounting process. It involves identifying and recording all financial transactions of a company. This information is used internally to help with operating, financing, and investing decisions of an organization.
Without this essential service, the business would have no clue of its financial position and would not be able to update stakeholders either.
Tasks completed by an outsourced bookkeeping service
Recording financial information
A business generates considerable financial information every single day. Purchases and sales are made daily, and they all require recording. An outsourced bookkeeping service records all such information with proof (receipts). This information is recorded in a logical order, usually chronological so that it’s easier to locate particular entries.
Compliance with industrial accounting practices
Every industry has specific accounting practices that have, over the years, become a standard that all companies in that sector comply with. Preparing the books without understanding these specific practices misleads your organization as the figures won’t be accurate.
Bookkeeping, in compliance with the industry standards, requires skill and experience. Organizations would otherwise need to hire employees for this department and rely on their knowledge, which would either be risky or costly. Working with a specialist third party company works in favor of the organization since these outsourced bookkeepers possess skill sets that are crucial if you’re looking to create accurate financial records.
Double-checking all transactions
Despite the volume of financial information generated by a business, outsourced bookkeepers double check all the entries to ensure there are no discrepancies. They are efficient at their job and hence can be relied on.
Accounts publications
Our experts also publish accounts for internal use within the organization. Account summaries are required monthly, while accounts are published on an annual basis. Our teams work to expedite the process so that you can have this information quicker.
Get in touch with our experts if you’re looking for a reliable company to outsource your accounting to. Our team of professionals at 3Alpha LLC provides bookkeeping services as well as ecommerce accounting entries to help businesses focus on their core operations. Our other services include CAD drafting services, and expert tax advising services, to name a few.
To find out more, contact us here.