![]() ![]() How does bookkeeping as a service benefit your business? Without them, you’d be gambling in the dark with little regard to the overall state of your finances!īookkeeping as a service also takes care of a few other vital matters. To make a long story short, bookkeepers offer you the ability to make decisions based on what you have and your potential. Then of course you need to calculate your COGS to make more sense of the figures… Your revenue isn’t all the money you have, as you need to take away your operating expenses to gain a more solid look at your income for the year. It’s these data files that grant you the ease of which to generate reports, view statistics and a glance and dredge up valuable data that affects both your day to day business, and the large-scale decision making of your future.Īn easy example of this is your operating income. Not only do these figures need to be recorded efficiently and effectively, but they also need to be neatly collated in an easily accessible, yet secure, data file. The recording and reporting of all of these figures is a demanding job, but a necessary one. ![]() As for bookkeeping as a service, professional bookkeepers need to understand where each and every transaction falls under in order to properly record your finances. To dig in properly, check out our guides on EBITDA for a more in-depth look at these sub categorisations as well as an introduction to depreciation. On top of that, you also need to define operating expenses and non-operating expenses in order to accurately provide valuable financial reports. Under certain business models, your Costs are money put forward in order to purchase assets (unless it's on credit in which case that would be a liability) whereas expenses are the finances used to cover the use and consumption of these items. What may seem like a cut and dry definition may not be as simple and straightforward as you think when it comes to bookkeeping services recording expenses.Įxpenses are the costs incurred by your business in its efforts to generate revenue, but again, it’s still not that simple.Įxpenses and Costs can be categorised differently depending on your business model. In bookkeeping as a service, there are 5 main accounts to be handled: This requires a strong grasp of basic maths and excellent organisational skills, not to mention the ability to quickly and methodically scan large sets of figures to identify any outliers or mistakes.īookkeeping is essential for businesses of all sizes, from sole proprietorships to large corporations. Bookkeepers must carefully track all financial transactions and ensure that they are properly recorded to precise parameters. ![]() The keystone of bookkeeping is accuracy and attention to detail. They need the ingredients before they can concoct, coerce and cajole the flavours out of their food.īookkeepers make sure that your management has the right amount of ingredients. If you’re in the food & drink industry, think of a chef. It's a vital part of any business, as it provides the information needed to make sound financial decisions. Bookkeeping is the process of recording and categorising financial transactions to provide an accurate picture of a company's financial position.
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