Managing the finances and transactions is a must for every company. One needs to keep a record of credits, debits, transactions, taxes, etc., to regulate the company's growth. Book-keeping is a record of the financial statements of a company in the form of transactions. Book-keeping in Montreal is an important aspect of accounting and needs regular updates and modifications to track day-to-day transactions. The record needs to be of the highest accuracy. Tohme Accounting Services in Montreal provide book-keeping services with the highest precision and well-made reports.
Importance of Book-keeping
Book-keeping manages the accuracy of accounting services operating in the company. It, therefore, determines the growth of a company. There is no accounting without book-keeping.
Track keeping of financial statements
Book-keeping keeps a check on the salary statements, payment receipts, sales statements, expenses on purchases, and any other expenditure that is made or needs to be taken in the company. To sum up, it keeps a record of each financial statement of the company.
Summarising records
A company needs to maintain a record of the income made. The number of expenditures done during tenure also needs calculation. Other ledger records also need regular updates. All this is summarized into a general form by book-keeping.
Creating financial reports
All the company-related information regarding the profits and the losses, assets, and liabilities are a part of book-keeping. It thus helps in creating financial reports to see the situation of the business at any time.
Book-keeping System
Book-keeping in Montreal involves all tasks needed to keep a record of and organize the financial transactions of the company. The duties under book-keeping are-
1.Recording the billed goods and services given to the clients
2.Keeping details of receipts from the customers
3.Collecting and verifying invoices from the manufacturer or suppliers
4.Calculating the payments made to the respective authorities
5.Making ordinary details of income, expenditure, and transactions
6.Preparing overall reports
Types of Book-keeping
The book-keeping system is mainly of two types- single entry and double entry. However, they can work in collaboration as well.
1.Single entry book-keeping
It refers to recording one entry for each financial activity. This system is generally cash-based. It keeps a record of the daily or weekly activities of the company.
2.Double-entry book-keeping
A double entry for each financial activity goes in this system. It records both credit and debit entries which keep a check on checks and balances. This system is not cash-based.
Storing the information and data
The information recorded by book-keeping goes in ledgers that summarise the recorded transactions. Many software automatically posts the transaction details to the respective ledgers and makes the required reports. Regular entries and updates are essential to generate financial statements and records on time.
Tony Hawlker is the author of this article.To know more about Bookkeeping Montreal please stay with our website:tohme-accounting.com