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Accounting and book keeping services includes the following accounting process which is done by the service provider on the behalf of the client as Bank Reconciliation, Payroll Reporting, General Ledger Posting, Monthly General Journal, Financial Statements, setup of chart of accounts, Tax planning, Cash flow management, management controls, reduce tax liabilities and ultimately higher profits.
Accounting in the information technology is the process of keeping track of a user's activity while accessing a network's resources, including the amount of time spent in the network, the services accessed while there and the amount of data transferred during the session. Accounting data is used for trend analysis, capacity planning, billing, auditing and cost allocation.
The majority of small businesses will want to use the accrual method of accounting. Even if you aren't required to do so for tax purposes, you'll have a better idea of where you stand month to month if you record your expenses as they are incurred.
Chart of accounts helps to keep organized and to help you understand the different types of accounts and their relationships. The main types of accounts include Assets, Liabilities, Equity, Income and Direct and Indirect Expenses. (Equity Accounts go with the Liability Accounts on the balance sheet.)
While you set up your chart of accounts and begin to assign account numbers, use some odd numbers. If you make all your numbers end in zero, it is easier to make a data entry error. For example, for an account you use a lot, like supplies, choose a main number like 5550...but make advertising 5312, not 5310. Spread yourself out over the available numbers...don't jam them up. You don't know when you'll need to add one at a future date, so leave some space.
Almost every accounting software packages come with preset charts of accounts for various businesses, which you can use to get you started, and modify as needed.
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