Basic accounting knowledge can be an excellent start to a career in finance. The notions and activities of local bookkeeping services are used in almost all business fields. Both multinationals and small companies need such services, which means that skills in this field can be used in many ways. Another advantage is that you can mix it with other skills to get more career opportunities and increase your chances of getting a well-paid job. If you want to know more about what that means, what bookkeepers do, and what such a career entails, keep reading.

What Services Do Bookkeepers Offer?

Bookkeepers register a company’s or a firm’s financial transactions. This process also involves analyzing, summarizing, and reporting these transactions to the authorities that regulate companies’ finances. Bookkeepers’ services include recording daily financial transactions, cash flow, financial operations, and financial position over a certain period of time. These things are essential for the smooth running of all aspects of the company, from sales to marketing or operations. As small as it is to global multinationals, any business needs such a financial service.

Local Bookkeeping Services to Function Legally

Commercial entities can only operate legally by keeping track of all financial transactions. Regardless of the size of the business, financial records must not only exist but must always be up to date to function legally. For example, when you establish a company, it is necessary to have local bookkeeping services to deal with the company’s finances, which is stipulated in the relevant legislation. It is a must to know what taxes you owe to pay to the state. These services help you always to know what taxes you must pay and what amounts you must pay to the tax authorities.

The fines for not paying taxes or avoiding them are very high, so it is best always to pay the correct amounts you owe to the state. You need bookkeepers to be able to expand your business. If a company wants to grow, buy more properties, or hire more people, it must know if it is financially positioned to make such moves. More precisely, he should be able to buy land, take out loans, or pay more employees. Accounting is essential to determine the financial position of a company.

Your records can clearly show whether a company made a profit or a loss. That’s why any business needs local bookkeeping services to measure success. These activities can also help determine which section of the business is more successful. To make the best financial decisions, you need someone who knows this field. A financial specialist in a company helps those who run it make the best financial decisions, evaluating the company’s situation and helping them come up with new development or management ideas.

Activities and Responsibilities

What does it include, and what are the main attributions of bookkeepers? In short, they deal with recording all financial transactions, but there are other responsibilities. The first step in this field is establishing the accounts in which the transactions, such as assets, debts, costs, or income, will be recorded.  The financial assets or assets of the company category include all the goods that the company owns. Financial assets have economic value that can be measured and expressed in money. Some examples of financial assets are cash, land, vehicles, buildings, property, and work equipment.

Liabilities or debts refer to the financial obligations or debts a company accumulates when carrying out its activity. Liabilities include mortgages, loans, and advance payments.

Equity refers to the amount of money a company must return to shareholders after liquidating all assets and paying all debts. To calculate equity, total liabilities are subtracted from total assets.

Costs are a company’s expenses, which mean the totality of the costs generated by the operations that bring profit. A company’s expenses include employee salaries, supplier payments, or equipment depreciation.

Income – revenues refer to a business’s total receipts from its activities. These represent the gross profit; expenses are deducted to obtain the net profit figure. Registration of all financial transactions is a must in local bookkeeping services because it is necessary to record all financial transactions, some of them taken over from other departments, in some instances: sales, purchases, compensation, etc. These are transactions in which products or services are transferred from buyers to sellers. Sales must be recorded in a document containing the transaction summary, and they usually involve issuing an invoice that must be sent to customers.

For a business to function, it will need more equipment, materials, or services. The bookkeepers must register any purchases made by the company. And that also means all the money a company collects because it offers services or goods to some consumers. Information about the payment of employees or collaborators will be needed, which the bookkeeper will establish based on the number of hours worked for each employee/collaborator. He also calculates the amount of taxes that must be paid for each of them and information related to other deductions to obtain the net income that will be paid to each.

Creation of Financial Reports

After the conclusion of all the transactions for a year or a predetermined fiscal period, the specialist in charge will transform all the data from the registers into financial statements, which show precisely the state of a company from an economic point of view. The financial statements include different documents. The income statement contains all the company revenues, from which all the expenses are deducted to obtain the losses or the net profit in the given period. Thus, the efficiency of a company and the possibilities of growth or expansion are measured.

The balance sheet. This document shows a company’s financial position in a given period of time and helps those who evaluate it to see if the company can support its expenses. The balance sheet includes information about financial assets, liabilities, and equity. The cash-flow type document contains information about the source of the money and its use in the company. The detailed information above is part of local bookkeeping services and includes the primary responsibilities of an expert in this field. Of course, based on the company field, these responsibilities differ.