Why it is advisable to provide engagement letters when performing bookkeeping services?
(1) It’s a way to add value to the engagement, and
(2) it’s a way to protect yourself from potential litigation.
In all engagements, we want to state exactly what we are doing. Because the client hired us to do and what they have not to do. You need an engagement letter that specifies monthly bookkeeping and nothing else. We should obtain a signed engagement letter for bookkeeping services, even though not required by standards that include a statement that the bookkeeping service is not designed to detect or prevent fraud.
To start with, the following information below are shown on the engagement letter for Bookkeeping Services:
Each receipt must include the vendor’s name and address, transaction date and the amount paid.
The deadline to file taxes slowly approaching, you start ransacking your home on a mad hunt to cull all those receipts from business trips, work lunches and any other necessary expenditure that might help you improve your chances of reduce your chargeable income. Many find that itemizing every penny spent throughout the year is nearly impossible. Dedication to the plan to retain every receipt has waned — much like that New Year’s resolution to work out three days a week or quite smoking within 1 week.
We would say keeping receipts is still the best way to assess your business annual spending accurately. The key to success lies in commitment to a system that makes it more like a daily habit than a chore.
If you are a freelance bookkeeper (or are planning to become one) you need to be aware of some useful habits to ensure success with your bookkeeping business. These habits won’t make or break you, but they will help your business run more smoothly and prevent frustration in the long-run.
Some bookkeepers are morning people and others don’t get into their groove until the afternoon rolls around. Find the time that you feel most productive and use that time for the work that requires the most concentration. Read more
Bookkeeping and accounting is both relevant tool in communicating the financial activity, performance and condition of a business entity. The important role of bookkeeping and accounting in every business has increased the demand for bookkeeping and accounting job or services worldwide. Because of the high demand, it made bookkeeping and accounting as two of the most profitable and rewarding profession in the world.
A bookkeeper (or book-keeper), sometimes called an account clerk, is a person who records the day-to-day financial transactions of an organization. A bookkeeper is usually responsible for writing up the “daybooks.” The daybooks consist of purchase, sales, receipts and payments. The bookkeeper is responsible for ensuring all transactions are recorded in the correct daybook, supplier’s ledger, customer ledger and general ledger. The bookkeeper brings the books to the trial balance stage. An accountant may prepare the profit and loss statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper. Read more
After all this time it still amazes me that business owners don’t understand the importance of having good records. They usually hire a clerk to do their taxes and then forget about it.
The problem – it’s not enough. I truly believe that a business where the owner understands the importance of good numbers is one of the main things that separate successful businesses from those that fail Read more
Small business owner or entrepreneurs tend to keep a lot of the financial details of their business in their heads. Problem is; that would not be the only thing that occupies their mind. Furthermore, as the number of transaction increase by day, the chances of forgetting the details are too risky. When you have a system and some processes in place, unpleasant surprises can be avoided, goals can be easily monitored and important paperwork can be done timely. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and maybe improve your profits. It can also help you to stay out of trouble with the Internal Revenue Service. Below are five bookkeeping tips for entrepreneurs.
1. PLAN AHEAD FOR MAJOR EXPENSES You’re less likely to miss business opportunities or have to scramble for a loan when the expenses become unavoidable. Put major events like a computer upgrade on the calendar a year in advance or, ideally, three to five years ahead. Acknowledge the seasonal ups and downs, something many entrepreneurs are reluctant to do. This helps you to be honest about the fact that it’s coming and plan for it. You’ll avoid taking money out of the company during the flush periods only to find yourself short in the slower months, when costly projects like upgrading computers or replacing factory components usually happen. Read more
If you are working with your clients as bookkeeper virtually… or headed in that direction, your role is in the process of some major changes. A large part of the bookkeeping role has been to do “intelligent” data entry so that financial records are accurate. But with the improvements in electronic information processing, much of this is being done by computer programs via the web instead.
Today’s basic accounting system is based on double entry, a 500 year old procedure dating back to the late 1400’s (in 1494, Franciscan monk and mathematician Luca Pacioli, a contemporary of Leonardo da Vinci, documented the double entry procedure quickly being adopted by Venetian merchants of his day).