If one is interested in making use of his accountancy degree in order to open up a business, then one thing that he can do is to create a firm that gives bookkeeping and accounting services. Now the type of clientele that this firm would target would be the businesses that would want a professional accountant to help their resident account or for those businesses who need financial statements made by a professional.
The first thing that the contractual bookkeeper would do would be to check the current journal entries that the company has already made. Basically, he will be checking if these journal entries would tally the figures that the company would currently show. They will also check if the journal entries are in line with the way that the government would want the companies to do.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
Now the trial balance is the report that would is the indicator as to whether all accounts are balanced and is the report that prepares the accountant for the creation of financial statements. Of course the contractual bookkeepers are the ones who will make the financial statements already. They are the ones who know how to properly make these statements and how to present them.
Of course they will start the process by making the income statement. This is the statement that would actually show how much income the company has made and how much expenses that the company has incurred as well. So basically, the income will be subtracted to the expenses and if the income will be higher, then the company would have made a net income.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other investments.
The very last statement that will be made will be the balance sheet. The balance sheet is the most crucial of all the three because it will show how well the company is doing. Basically, it would showcase the assets as compared to the liabilities and the equity of the owner.
Now after the three financial statements have been done, then the bookkeeper will just have to do a double check. Once he has already made sure that everything is complete, then he may actually submit the documents for auditing. So if one is providing bookkeeping and accounting services, he will be doing all of these things for his client.
The first thing that the contractual bookkeeper would do would be to check the current journal entries that the company has already made. Basically, he will be checking if these journal entries would tally the figures that the company would currently show. They will also check if the journal entries are in line with the way that the government would want the companies to do.
Now of course he would be checking the ledger accounts after he has checked the bunch of journal entries. He has to make sure that each ledger account is done properly because it will be in preparation for the trial balance. Now he also has to make sure that all the documents are done properly so that auditing can be done smoothly.
Now the trial balance is the report that would is the indicator as to whether all accounts are balanced and is the report that prepares the accountant for the creation of financial statements. Of course the contractual bookkeepers are the ones who will make the financial statements already. They are the ones who know how to properly make these statements and how to present them.
Of course they will start the process by making the income statement. This is the statement that would actually show how much income the company has made and how much expenses that the company has incurred as well. So basically, the income will be subtracted to the expenses and if the income will be higher, then the company would have made a net income.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other investments.
The very last statement that will be made will be the balance sheet. The balance sheet is the most crucial of all the three because it will show how well the company is doing. Basically, it would showcase the assets as compared to the liabilities and the equity of the owner.
Now after the three financial statements have been done, then the bookkeeper will just have to do a double check. Once he has already made sure that everything is complete, then he may actually submit the documents for auditing. So if one is providing bookkeeping and accounting services, he will be doing all of these things for his client.
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