Accounting is art as well as science. In simple words, accounting services like www.shkoh.com.sg summarize, record and classify the transactions of your business. Book keeping deals with all the financial records of your business. It is about maintaining systematic revenue and expenditures of a business. The double entry book system is the mostly followed business. Double entry means the transactions of your business will be entered twice in the records firstly as debit and secondly as equal credit. This is mainly done to avoid mistake and to give more accuracy.
There are other common economic terms associated with them, you should know if you are going to hire an accounting service:
Assets and expenses: both these terms are example of debit, assets means all the things you own including any debt you have given. And expenses are costs that are needed to run your business.
Income and liabilities: these are the example of credit. The earnings you get from your business is income while the sum that you owe to somebody is liability.
Services you can get:
Maintaining an account: The accounting services maintain the individual’s record of finances such as sales, travel, salary, cars, banks, loans and the sum owed to suppliers etc. in different accounts for example sales account or travel account. It becomes easier for you to know how much money was spent on what. There are more accounting related services. You can visit www.shkoh.com.sg/corporate-services/accounting-services/ to know more.
Balance sheet: The balance sheet is given by these services at the end of the year. This sheet contains all the assets of your company and liabilities also. For double entry system, you can easily calculate the profit and losses in comparison with previous years.
Profit or loss statement: It is the comparison between expenses and income of a company. This tells you about what profit or how much your business has made in records so that you can go through it thoroughly. It is not just money in and out.