How can an accounting firm guide you in bookkeeping for your business?
Simply said, bookkeeping is the process of keeping track of your company’s financial transactions and carefully recording them so you know where your money is going and where you’re making money. Bookkeeping is critical for commercial enterprises since it serves as the foundation for all other activities. Without appropriate bookkeeping, no firm can reach its goals as expected because its decisions are not based on correct records of transactions.
How can an accounting firm guide you in bookkeeping for your business?
- Helps in Selecting the best bookkeeping approach for your small business: Bookkeeping methods include single-entry and double-entry systems, which are best suited for freelancers and sole owners. Single-entry systems record transactions once, while double-entry systems record transactions twice. Accounting firms can select the best system based on their comfort level and commercial transactions.
- Guiding in Bookkeeping implementation & maintenance: The only way to know if the transactions and accounts are correct is to balance the books. The owners must regularly enter transactions and execute bookkeeping activities to verify the accuracy of the accounting. To reduce the burden at the end of the month, the accounts must be balanced weekly. It is feasible to balance the accounts daily with the assistance of an accounting firm.
- Guiding to Keep track of every business transaction: The owner must ensure that each transaction is entered into the relevant account heads after setting up the business’s accounts, which includes creating distinct heads of accounts such as assets, liabilities, revenue, and costs, among others. Additionally, every transaction must be identified and recorded according to its nature, as failing to record a tiny transaction can lead to inaccuracy. An accounting firm is essential to ensure that transactions are recorded accurately.
- Organise your business general ledger: A general ledger is one of the classic ways for recording transactions for the first time when they occur. Owners can use Excel sheets and apps to record transactions and organise them. An accounting firm can help business owners set up their general ledger efficiently.
- Ensure confidentiality for your business operations: Another important fundamental concept that the business owner must be aware of is confidentiality. The business owner must ensure that their records are not disclosed or destroyed, and secure them to prevent them from falling into the hands of a third party. This needs expert advice from an accounting firm.
- Guidance in Creating and updating financial reports: The financial report of the firm is the ultimate document that represents the business outcome reports, which are essential for obtaining financing from financial organizations. It includes assets and liabilities, revenue or expenses, and cash outflow or inflow. Every business owner must generate these reports because they are critical and may be useful for obtaining financing from financial organizations, among other things and thus it is better to take the guidance of an accounting firm.
ERUM Accounting Services and Consultancy WLL is a management consulting company established in the Kingdom of Bahrain to provide various accounting, finance and Management Consulting Services. The company is promoted by knowledgeable individuals having more than 20 years of combined experience in different fields of Accounting and Bookkeeping Services, CFO Services, Payroll Services, Management Consultancy Services, VAT Consulting Services, Company Formation Services and Digital Branding services. Our sole mission of being a reliable knowledge-sharing accounting and consulting partner to small and medium enterprises in Bahrain is accomplished by providing Bookkeeping services, VAT consulting, CFO Services, Preparing Policies and Procedures, Feasibility studies, Valuation report preparation, Business Plans, Financial Forecasts etc. We also specialize in assisting individuals and companies to get Loans from Islamic and conventional Banks and can help the companies to restructure their business and to conduct a turnaround.