Bookkeeping services in India is part of an accounting service necessary for all businesses, irrespective of their type and size. It is the practice of keeping organized and systematic records of all financial flow in an organization. Although possessing a record of financial accounts is a compulsion by law for business organizations, it serves to be an extremely beneficial service for the decision-makers. However, it is not an easy deal, which is why bookkeeping requires professional help. In contrast, enterprises are known to hire bookkeepers in their team for ease, startups, and small business owners, because of their budget constraints, choose to outsource bookkeeping services in India.
Hired or not, the role of a bookkeeper in a business organization is irreplaceable and extremely crucial. It is always essential for the business owner to understand the function and importance of the requirement well before filling it. Thus, the next section highlights all the functions that a typical bookkeeper needs to play in keeping the business rolling.
Role Of Bookkeeper In A Business Organization
While the primary role of a bookkeeper includes recording all transactions in an organization, depending on the size and needs of a company, the job description may significantly change. Here is a list of activities that most bookkeepers are required to do with slight changes in combination, depending on the structure of the organization.
1. Debit Accounts
Every payment before being made by an organization needs to be recorded as an expense by a bookkeeper. However, the process is not that simple; payments and orders are confirmed through invoices as proofs and then entered in the software.
2. Credit Accounts
Sane, as debit records, credit records, which refers to the sale, also goes through a similar process. In this case, the proof of receiving a payment comes from a payment receipt. One copy of which goes to the customer, and the other is kept as an organizational proof required in GST return filing.
3. Banking
Bookkeeping services in India, aside from tracking accounts, also takes care of banking, as the fund flow either takes place through a bank account or eventually leads to it. Thus, it falls under a bookkeeper's duties to track and account for electronic payments as well. Another important role in banking is to analyze and correct any discrepancies in the monthly bank statements of the organization.
4. Maintain General Ledgers
Bookkeepers, along with bookkeeping, maintain general ledgers as well that accounts for overheads and inventories. General ledgers, along with bookkeeping, helps in getting an overview of a monthly financial report.
5. Account Reports
A business organization in India is required to produce various financial reports for different authorities and councils. Other than the government, the investors, and the management, need to analyze the financial report from time to time.
6. GST Return Filing
One of the most crucial roles of taking bookkeeping services in India is getting ready for GST Return filing. Filing tax returns can be a very tedious job for an individual with no expertise in accounts. An important thing to keep in mind is that it is also not a single day job. Filing returns requires an accounting of all transactions that a bookkeeper is required to keep. It involves showing the receipts and invoices collected in a financial period that accounts for the current balance. Because uploading these documents is a significant part of the process, it cannot be done without keeping regular tracks of financial transactions.
7. PayRoll
While employee payroll comes under the duty of another department, releasing payments and keeping an account for the same remains under the duty of a bookkeeper. A bookkeeper is responsible for monitoring and timely payment of salary release, reimbursements, and even commissions where required.
8. Clerical
While it is not a requirement everywhere, small businesses with fewer people may require the bookkeeper to take up clerical responsibilities required for bookkeeping. It may involve contacting customers and collecting invoices, maintain files, both electronic and files, closing annual accounts, etc.
While a bookkeeper's responsibilities largely vary from organization to organization, specific roles remain inevitable for the job. It includes keeping the record of credit and debit flows, maintaining general ledgers, and banking. Although these are the basics of any bookkeeping jobs, an essential task that only professional bookkeepers can do is GST Return filing and filing other taxes. It is the very reason why most organizations turn up to take help from service providers like TaxWink for a cost-effective, easy process.
