All businesses in Los Angeles or elsewhere need to be dependent on book keeping as well as accounting services. The requirements are universal as it provides you information of great significance without which a business man will have no clue the way his business is headed. While both the terms are used by people interchangeably, both carry distinct meaning.
Bookkeeping Methods Of Firm
Bookkeeping is the method of keeping records of all monetary transactions of a company. It is the job of the bookkeepers to log all financial transactions, record the sales, purchases, paying bills, cash, bank transactions, deductibles, keeping track of checks and other income, reconciling business checkbook, paying employees, filing, paying federal and state payroll taxes, keeping track of amounts owed to company by customers and following up with billing and collections activities and many more. With all these done, it helps the company regulate cash flow, and establish the profits and losses. Additionally, these activities aid a company foretell future tendency – necessary to prepare operational plans to continuously improve upon financial stability and profitability. Double entry system is the standard the bookkeepers use to write records.
Interpretation Of Bookkeepers In Accounting
The accounting tasks set up records of the financial affairs of the company. Bookkeeping serves as a function of accounting. Both are inseparably related and interlinked with one another, as the latter depends on the output of the former. Accounting produces interpretation of the numbers prepared by the bookkeeper to determine the financial health of the firm. Accountants present all important business information to company stockholders, in addition to the relevant government departments like Internal Revenue Services. Accountants work with the information given to them by bookkeepers to create crucial reports and documents. It also includes the presentation and financial health and control functions of the company.
Bookkeeping Business In LosAngeles
In most businesses, the bookkeeping clerks report to the accountant. In small businesses, the accountant and the Chief Financial Officer may be one and same person. It is not unusual for businesses in Los Angeles or elsewhere to outsource one or both the functions to specialist companies located in Los Angeles, in case the business decides in favor of strategic shift of operations. Nevertheless the business owner needs to be in complete knowledge of the progress and control authoritatively as is needed. The banks and insurance companies dealing with the business usually require the business to submit the reports produced by the two functions lack of which can potentially lead the business to legal issues.
The minimum qualification for taking up a book keeping position is a high school diploma and deep love for numbers. While people do start a bookkeeping career armed with undergraduate degrees in accounting or business, reputed employers seek post-secondary education in accounting or better still an associate degree in accounting.
Los Angeles bookkeepers earn anything between $34,000 and $46,000 per annum. There counterparts in Chicago, Illinois can seek to be compensated with anything between $24,000 and $39,000. The ranges existing in New York City and in Dallas, Texas respectively are between $33,000 and $46,000 and between $32,000 and $41,000.
Due to increased automation and computing, most manual activities have reduced significantly, yet the Bureau of Labor Statistics projects bookkeeping positions and employment to grow by 10 percent between now and 2018.
The businesses in Los Angeles also possess the luxury of seeking alternative solutions instead of having a team or department in its employment. A world of solutions exists in Los Angeles – for instance – seeking the service of a trustworthy professional accounting company. Such services serve as a great boon for entrepreneurs starting a new business or ones looking forward to expanding far and wide.
Depending on one’s volumes of business, one can find small, medium and large scale accounting companies that can provide competent services related to all indicated above, Even if one starts with seeking services from a small accounting company, with today’s dynamics and the intent, the services can be scaled up for the mutual benefit of both – the service seeker as well as the service giver. Such services assure assistance to the company managing its finances in an optimal manner and establish a customized formal procedure for generating and maintaining all organizational accounting records. With a skilled management of the incomes and expenses, it helps the entrepreneur to focus its energy on the growth and expansion.