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.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
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.
Of course after he has already checked all the journal entries and the ledger accounts, then he may make the trial balance. This has to be done before he would make the financial statements as the three financial statements are the most important documents to an accountant. So basically, the contractual accountant would be making these financial statements for the client.
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.
Now after the creation of the income statement, then they will be creating the statement of changes in equity. Basically, this would be the statement that would show the changes with regard to the capital of the business. It includes the capital, net income, withdrawals, and additional 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.
Now if one would provide this kind of service for a private client, then he will be the one who will check the journal entries of the current accountant. Journal entries are done on a day by day basis and they have to be recorded by the resident accountant in order to keep the business alive. The contractual bookkeeper will be working hand in hand with the this accountant in this matter.
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.
Of course after he has already checked all the journal entries and the ledger accounts, then he may make the trial balance. This has to be done before he would make the financial statements as the three financial statements are the most important documents to an accountant. So basically, the contractual accountant would be making these financial statements for the client.
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.
Now after the creation of the income statement, then they will be creating the statement of changes in equity. Basically, this would be the statement that would show the changes with regard to the capital of the business. It includes the capital, net income, withdrawals, and additional 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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