The accounting and bookkeeping processes are all about recording, classifying, and summarizing the financial records of a company. These systems are essential to running a successful business.
There are two types of accounting: general and specialized. General accounting encompasses the processes of maintaining financial records and handling day-to-day transactions; specialized accounting focuses on one type of transaction such as accounts payable or receivable, payroll, or cash management.
Accountants collect, analyze and summarize information from these transactions to produce financial statements for the company such as profit-and-loss statements (P&L), balance sheets (B/S), and statements of cash flows (C/F).
Accounting and Bookkeeping Services
Accounting and bookkeeping services are a part of financial management. They encompass a variety of tasks, including preparing financial statements, handling payrolls and preparing taxes.
Accounting and bookkeeping services typically include:
- Preparing financial statements for a corporation by developing and analyzing the balance sheet, income statement, and cash flow statement.
- Handling payrolls
- Preparing taxes
- Bookkeeping (recording and organizing day-to-day transactions)