If one is interested in making use of his accountancy degree in order to open up a business, then one thing that he can do is to create a firm that gives bookkeeping and accounting services. Now the type of clientele that this firm would target would be the businesses that would want a professional accountant to help their resident account or for those businesses who need financial statements made by a professional.
Now one of the main jobs of this type of bookkeeper is to monitor the journal entries that the company would be providing him. Journal entries are extremely important because they would actually monitor the operations of the business on a daily basis. It is for this reason that the contractual accountant has to make sure that the journal entries are done properly so that the creation of the other documents later on will go smoothly.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
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.
Now the very first financial statement that the bookkeeper would be making would be none other than the income statement. Basically, the income statement is the statement that would compare the income that the company made as compared to the expenses. Now if the income is shown to be higher than the expenses, then the company made a net income, but if it is the opposite, then the company incurred a loss.
The second financial statement that will be made would actually be the statement of equity which deals with the capital. In a nutshell, this statement will be illustrating what the changes in the capital of the business would be. It would show the net income plus the additional investments minus the withdrawals.
The very last statement that will be made will be the balance sheet. The balance sheet is the most crucial of all the three because it will show how well the company is doing. Basically, it would showcase the assets as compared to the liabilities and the equity of the owner.
Upon the creation of the three financial statements, the bookkeeper will now be able to pass them for the auditing process. So basically, these things are the bookkeeping and accounting services that the firm will be providing for private clients. If one has the accounting skills, then he will definitely be able to do a good job here as the tasks that are done will be easy for accounting majors.
Now one of the main jobs of this type of bookkeeper is to monitor the journal entries that the company would be providing him. Journal entries are extremely important because they would actually monitor the operations of the business on a daily basis. It is for this reason that the contractual accountant has to make sure that the journal entries are done properly so that the creation of the other documents later on will go smoothly.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
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.
Now the very first financial statement that the bookkeeper would be making would be none other than the income statement. Basically, the income statement is the statement that would compare the income that the company made as compared to the expenses. Now if the income is shown to be higher than the expenses, then the company made a net income, but if it is the opposite, then the company incurred a loss.
The second financial statement that will be made would actually be the statement of equity which deals with the capital. In a nutshell, this statement will be illustrating what the changes in the capital of the business would be. It would show the net income plus the additional investments minus the withdrawals.
The very last statement that will be made will be the balance sheet. The balance sheet is the most crucial of all the three because it will show how well the company is doing. Basically, it would showcase the assets as compared to the liabilities and the equity of the owner.
Upon the creation of the three financial statements, the bookkeeper will now be able to pass them for the auditing process. So basically, these things are the bookkeeping and accounting services that the firm will be providing for private clients. If one has the accounting skills, then he will definitely be able to do a good job here as the tasks that are done will be easy for accounting majors.
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You can visit pbsmanagementservices.org for more helpful information about Providing Bookkeeping And Accounting Services.
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