Bookkeeping & Payroll

Bookkeeping is the systematic and comprehensive recording of a business's financial transactions. It involves documenting all money coming into (income) and going out of (expenses) the business. Think of it as the foundation of the accounting process.  

Recording Financial Transactions

This is the core of bookkeeping. It involves documenting every financial event, such as sales, purchases, payments, and receipts. This is typically done in chronological order.  

Identifying and Classifying Transactions: Each transaction needs to be correctly identified and categorized into relevant accounts (e.g., sales revenue, rent expense, salaries). This ensures that financial data is organized logically.  

Preparing Source Documents

We often work with source documents that provide evidence of financial transactions. These can include invoices, receipts, bank statements, purchase orders, and cash register tapes.  

Maintaining Journals and Ledgers

Transactions are initially recorded in journals (also called "books of original entry" or "daybooks"). These journals are then summarized and posted to the general ledger, which provides a complete record of all financial accounts.  

Reconciling Accounts: Regularly comparing internal financial records with external records (like bank statements) to ensure accuracy and identify any discrepancies. Bank reconciliation is a common example.  

Generating Basic Financial Reports

We may prepare basic financial reports like income statements (profit and loss) and balance sheets, although the in-depth analysis and interpretation of these reports are typically done by accountants.  

In simpler terms, bookkeeping is about keeping a detailed and organized record of all the money-related activities of a business.  

Why is bookkeeping so important

Accurate Financial Picture

Provides a clear and up-to-date view of the business's financial health.  

Informed Decision-Making

Enables business owners and managers to make informed decisions about investments, cost-cutting, pricing, and growth strategies based on reliable financial data.  

Budgeting

Facilitates the creation of accurate budgets by providing historical financial data.  

Tax Compliance: Ensures accurate records are available for preparing and filing tax returns, helping to avoid penalties.  

Cash Flow Management

Helps track money coming in and going out, allowing for better management of cash flow and identification of potential issues.  

Performance Evaluation

Allows businesses to track their performance over time, identify trends, and measure progress towards financial goals.  

Securing Loans and Investments

Lenders and investors require accurate financial records to assess the creditworthiness and potential of a business.  

Audit Trail

Provides a clear audit trail of financial transactions, which is essential for internal controls and in case of audits.  

Detecting Errors and Fraud

Regular bookkeeping can help identify errors or fraudulent activities early on.

Payroll 

We'll run your company's payroll either weekly or monthly as requested. The payroll service include  Employment benefits, Maternity Leave, Sick Pay, Holidays and Directors.