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Accounting and Bookkeeping FAQs
Q1. Why is accounting important in business?
Accounting or bookkeeping plays an essential role in running a business as it helps you keep a track of income and expenditures, ensure statutory compliance, and provide investors, government and the management with quantitative financial information which can be used in making various business decisions.
Q2. What are the main processes of accounting?
The main processes of accounting are:
- Identification of data
- Recording of data
- Communication of data
Q3. Do all businesses need accounting services?
Yes, all businesses need accounting services for estimating and preparing its tax returns. Therefore, you will need a firm or an accountant to assist with the company’s tax needs.
Q4. What is accounting software?
Accounting software helps in keeping track of cash inflows and outflows of an organization. There are different kind of modules present through which a software works, such as General Ledger, Account Receivables, Account Payable, etc. Software can also manage the payroll system and takes care of reporting management.
Q5. What software is currently being used in accounting?
Following are some software’s required for accounting:
- QuickBooks Online.
- Xero
- FreshBooks
- Sage
- Zoho Books.
- Odoo Accounting.
- Wave Accounting.
- Sage Intacct.
Q6. What are the managerial functions of accounting?
Five managerial functions of accounting are:
- Control of financial policy and formation of planning.
- Preparation of budget.
- Cost control.
- Evaluation of employee’s performance.
- Prevention of errors and frauds.
Q7. What are the responsibilities of a bookkeeper?
Bookkeepers are responsible for an on-going maintenance of their client’s general ledgers. Bookkeepers’ usual responsibilities consist of:
- Compiling data on a regular basis
- Categorizing expenses in the general ledger
- Reviewing the general ledger for accuracy
- Reconciling bank statements against the general ledger
- Generating financial statements
Q8. What kind of services do Bookkeepers provide?
- Bank Reconciliations
- Accounts Payable
- Accounts Receivable
- Expense Reports
- Cheque Preparations
- Payroll
- Financial Statements
Q9. How does a virtual bookkeeping service work?
A virtual bookkeeper handles your bookkeeping remotely; you communicate with them and share your financial information. Bookkeeping services are performed by one of the three ways: 1) Online 2) Cloud-hosted platform or 3) Locally on our computer and send back the file when completed. Depending on the schedule that you choose for the books to be updated, we can perform the bookkeeping services daily, weekly, twice monthly, monthly, quarterly, and annually. Whenever our scheduled time occurs, the day before is the deadline to turn in documents related to the bookkeeping, bills, checks written, etc.
Q10. Why outsource services instead of hiring an employee?
You have the option to hire an employee to help with bookkeeping and accounting. But, make sure that you understand the financial burden of bringing in another employee. Not only do you need to pay the full-time salary, but other associated costs include benefits, office equipment, office space, employment taxes, payroll, and more. These costs can add up!
Q11. My business is located outside India; can you still keep my books?
Yes! We work remotely with all of our clients and conduct meetings over the phone and video calls. As long as you have an access to the internet, you can work from anywhere in the world, and we can still keep your books.
Q12. How do I get my documents to you?
Dropbox is preferred; we can also use any other shared drive or e-mail. We can conform to any process that makes our client’s life easier.
Q13. How much does a bookkeeper cost?Q13. How much does a bookkeeper cost?
A bookkeeper charges a flat monthly fee or an hourly rate based on your needs and requirements.
Q14. How much do you charge?
At MAS, there are no up-front fees or hidden costs. You pay us by the hour, so you pay only for what you need. Unlike a part-time employee, there are no charges for taxes and benefits. The specific rate depends on the scope of work. For an exact quote, please contact us.
FAQs
A virtual CFO is simply a part-time Chief Financial Officer who manages the finance and accounting function of a business virtually. The tasks include but are not limited to bookkeeping and day-to-day work, financial review and reporting, strategic planning and forecasting, and cash management.
We offer you following services as a virtual CFO:
- We perform all the duties that a traditional CFO does but we work on part-time basis.
- With the help of cloud technology, we monitor your financial health and the well-being of your business.
- We provide you financial insights and guidance on all company related decisions and issues; and
- We also offer you back-office services such as manage your accounts, ledgers etc.
The time required to complete the process can be as long as necessary depending upon the requirement of the client.
The “virtual” in Virtual CFOs actually refers to the fact that we are not full-time employees. Otherwise we are very real. We work onsite or remotely, depending on where we can be most effective.
A virtual CFO can do all those things which a controller cannot.
- A virtual CFO can give you on-time, accurate, and insightful financial and operational information about your business
- He helps you create and upgrade your strategic plans and assess your organizational efficiency
- A virtual CFO helps you take your company to next level
- A virtual CFO assembles a skilled, professional and talented accounting staff
- And most importantly, a virtual CFO puts together a financial package, effectively present it to your banker and get the financing you need.
At AJSH, our services will help you keep your CFO costs low and minimize the risk of non-compliances, unavailability of information, lack of internal skill set, attrition of key employees, etc. We mold our services keeping into consideration our client’s convenience. Depending upon where it can be most effective we can offer you an onsite work as well. So, depending upon the efficacy of the terms of engagement, we work both remotely and onsite. Our focus is assisting companies with the operational and reporting side of accounting on a monthly or weekly basis, as opposed to an annual basis. We keep a working relationship with our clients and act as their virtual finance team so that all aspects of their accounting cycle and reporting are taken care of each month.
