The comprehensive preparation of records for all financial transactions in a systematic way in a business is known as accounting. It can also be described as making summaries of the financial transaction reports, analysing them and making reports on all these transaction to agencies that oversees activities such as auditing in a business as well as the entities required to collect tax. Accounting is as important as any other department that helps in the running of an organization and depends on the size of the organization where accounts can be handled by accountants and bookkeepers for the small entities and a finance department with a number of employees for large companies. To learn more about Financial Records, visit Orlando accounting. Accounting ensures that the businesses are able to come up with informed decisions through the financial reports they are presented with. Bookkeeping and tax preparation are some of the roles carried out by those individuals who engage in accounting in a business.
Financial transactions such as sales, purchases, receipts or payments that have been made to an individual or another organization that take place in a business need to be recorded by the bookkeepers at all times. The bookkeepers records all cash and credit transactions in the respective books such as supplier's ledger, daybook, customer's ledger and the general ledger. It is through these financial records that an accountant is able to come up with reports on the financial situation of the business. Single-entry and double-entry bookkeeping system are the two common entry systems in bookkeeping. It is only the expense and income accounts can be recorded in the journal for expenses and revenue single-entry bookkeeping method. In the double-entry bookkeeping system, two entries for accounting are required to make records for the transactions and can occur in the liability, asset, expense, equity or the revenue accounts.
Tax preparation is also a common role carried out in accounting so that the appropriate tax returns can be filed for the business to the responsible body every year. For more info on Financial Records, click Orlando bookkeeping. The tax preparers, certified public accountants, attorneys or even enrolled agents can be hired by the business to carry out the tax preparation process. It is important for every business to file their tax returns every year and the tax prepatation includes activities such as calculation of the total tax amount and filing the tax.
Individuals who are mandated with accounting roles need to have certain qualities to ensure that they carry out quality work. Professionalism and ethics are important and should be followed to the letter to ensure they do not expose financial information to unauthorized persons. Verbal and written communication is essential which ensure that they can provide proper guidelines in all issues pertaining to finances. Accountants need to have a proper customer relationship to ensure that customers obtain proper services and the issues are tackled effectively.