Bookkeeping - The Complete Guide

Accounting & Bookkeeping,Financial Services

Beginners Guide to Bookkeeping - The Basics Every Company Needs to Know!

Bookkeeping – seems to be a big, difficult, and complex task. But is it really? Today the experts at RSN Consultancy are sharing some of the basics you as an entrepreneur should know about Bookkeeping.

But before we talk about the basics of Bookkeeping, let us simplify the term bookkeeping for all the new entrepreneurs who are relatively unknown to the term and for the small businesses who are in process of taking a decision –to outsource bookkeeping or not!

There is usually confusion between the terms bookkeeping and accountancy. Most people are unaware of the difference and use them interchangeably. They are the two sides of one coin. Where Bookkeeping is the recording of financial transactions; Accounting is the interpretation of these records kept by a bookkeeper.

Beginners guide to bookkeeping

Here are the tasks a bookkeeper does: -

  • Manage the accounting system: A bookkeeper keeps close attention to setting up and maintaining your accounting system.

  • Prepare financial statements: An ideal bookkeeper maintains and provides financial reports on a regular basis. The frequency can be decided by you and the bookkeeper, i.e., whether to have weekly or monthly reports. These reports include Profit & Loss (P&L) statement, Balance Sheet, cash flow statement, and budget.

  • Reconcile accounts: Not all your transactions might generate revenue on the same day. There would be creditors who would pay post a specified time, or you would owe money that would be paid later. To ensure there is accurate data, and you have actual cash flow information, reconciliation either weekly or monthly is essential! A bookkeeper ensures all your accounts are reconciled, and you have up-to-date information about the money flowing in and out of your business.

  • Process transactions: Your bookkeeper would create and send invoices promptly and follow up on the payments to manage the cash in the business. While doing so they would also manage invoices, payments, receipts, and other financial transactions by entering the details in the system.

Why RSN Consultancy?

We are the best in the market, and no this is not us boasting about our services. Our clients trust us and vouch for the quality service that we provide.

RSN Consultancy Accounting & bookkeeping firm

Nevertheless, here are the reasons why you should choose RSN Consultancy for your bookkeeping needs!

  1. You can focus on business: Bookkeeping is a time-consuming and tedious task. Hence, by outsourcing your bookkeeping to us, you are saving your time and energy on everyday tiresome tasks and focusing on stabilizing and growing your business.

  2. Ample of resources and expert advice: In-house bookkeepers may work solo, and hence can run into problems more often. Having a team of experts outsourced helps to resolve such issues with ease. Also, our team of experts has exposure to many tools and resources related to bookkeeping that will help and support the changes necessary to expand your business.

  3. Save Cost: A bookkeeping person, may or may not have tasks during the off-season. Hence, instead of spending a considerable on FTE for bookkeeping, having us onboarded for your bookkeeping needs will save the cost. That is, you would only pay us for the duration we worked!

  4. Fewer errors: Our experts are RSN Consultancy are the best in the business of bookkeeping. They have undergone rigorous training and have years of experience. As a result, the chances of errors are very minimal. Also, we have multiple bookkeepers who would go through the books, to keep the errors zero.

  5. Privacy and confidentiality: We understand the value of the financial data that you share with us. All our experts are bound by a confidentiality obligation and are thorough professionals, which makes us the number 1 choice by our clients for their bookkeeping and accounting needs.

Have Any Questions?

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