If one is a professional in the field of accountancy, then it is actually possible for him to put up a firm that would provide bookkeeping and accounting services. Now this type of service is targeted to those businesses who would need a second opinion or a person who could create their financial statements. So if one is in this type of business, then here are the things that one would have to accomplish.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Now when one is done checking the journal accounts, then he would have to check the ledger accounts. The ledger accounts are the accounts that would go to the trial balance later on. It is the job of this contractual account to make sure the ledger accounts are ready for the creation of the trial balance which is made next.
Of course after he has already checked all the journal entries and the ledger accounts, then he may make the trial balance. This has to be done before he would make the financial statements as the three financial statements are the most important documents to an accountant. So basically, the contractual accountant would be making these financial statements for the client.
So of course the first thing that these bookkeepers would be doing would be to prepare the income statement. For those who do not know, the income statement is the report that will showcase the income versus the expenses of the company. If the income is more than the expense, then the company has a net income but if it is the other way around, the company has a net loss.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other investments.
The last financial statement that the accountant will be doing is none other than the balance sheet. The balance sheet is the only financial statement that would contain all of the account titles of the business and would actually show whether the business is doing well or not. Basically, it is a comparison of the assets versus the liabilities and the capital balance.
Once all of the financial statements has been made, then the contractual accountant will examine each document before auditing. Basically, they will be the ones who will provide all the necessary bookkeeping and accounting services so that the company is ready for the audit. That is the main purpose of hiring a worker from a firm that would actually provide this kind of service.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
Now when one is done checking the journal accounts, then he would have to check the ledger accounts. The ledger accounts are the accounts that would go to the trial balance later on. It is the job of this contractual account to make sure the ledger accounts are ready for the creation of the trial balance which is made next.
Of course after he has already checked all the journal entries and the ledger accounts, then he may make the trial balance. This has to be done before he would make the financial statements as the three financial statements are the most important documents to an accountant. So basically, the contractual accountant would be making these financial statements for the client.
So of course the first thing that these bookkeepers would be doing would be to prepare the income statement. For those who do not know, the income statement is the report that will showcase the income versus the expenses of the company. If the income is more than the expense, then the company has a net income but if it is the other way around, the company has a net loss.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other investments.
The last financial statement that the accountant will be doing is none other than the balance sheet. The balance sheet is the only financial statement that would contain all of the account titles of the business and would actually show whether the business is doing well or not. Basically, it is a comparison of the assets versus the liabilities and the capital balance.
Once all of the financial statements has been made, then the contractual accountant will examine each document before auditing. Basically, they will be the ones who will provide all the necessary bookkeeping and accounting services so that the company is ready for the audit. That is the main purpose of hiring a worker from a firm that would actually provide this kind of service.
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