While full-scale accounting professionals and teams are common in big corporate entities and businesses, most smaller firms will in fact make use of employees that can perform the regular accounting and recording functions with ease.
As such, not only does bookkeeping pertain to most of the accounting process itself, in the ordinary context, it also used more often in the context of small and medium-sized ventures.
While accounting processes are geared towards depicting a true picture of the finances of the company for use by the stakeholders associated with it, bookkeeping services in Dubai pertain to the regular state of affairs of a financial nature.
This means it covers the steps of recording and analysis of the monetary transactions of the company, and the people working in this segment have the obligation to craft financial statements, such that those from the accounting department can carry out the processes that have to do with tax liability and legal requirements quickly and efficiently.
Seasoned bookkeepers with the necessary level of expertise and experience are expected to be able to deliver financial statements that produce accurate date regarding a company’s financial undertakings.
This is because this set of information and accounting data is important to the long-term success of the company.
In most jurisdictions, financial records prepared by bookkeepers are required by law and the relevant regulatory bodies to be preserved for five years since they were first drafted.
Other more rudimentary pieces of information such as payroll data may be required to be kept for longer periods.
The regular tasks of bookkeepers include recording financial transactions, carrying out reconciliations and annual processes, implementing and overseeing accounting software, making sure the relevant accounting procedures are being carried out according to legal requirements, and discharging payroll delivery functions.
Within the general processes to be carried out by bookkeepers, there are four major components that ought to be kept and updated as need be.
These include daybooks, the petty cash book, journals, and ledgers.
The daybook carries a record of the daily financial transactions carried out by the business, and the entries from this part of the record are entered into the journals as well.
The petty cash book is reflective of the purpose the title suggests. It carries entries that have to with small-scale financial transactions that take place on a day-to-day basis.
Journals carry the fair record of the financial transactions that took place, and this set of data is eventually used to make entries into the ledgers.
Ledgers carry data from the journals as debits and credits, and are a permanent record of the important financial transactions undertaken by the company, and carries relevant transfers by date.