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Financial 304 views Dec 10, 2019
Bookkeeping and Accounting

Having a business means having large piles of mounting documents from countless trades, deals, statistics, expenditures and profits.

Keeping track of all of these activities is one of the most important functions of a business. If you want your business to run smoothly that is.

Not having proper documentation or accounts of your expenditures and profits can bring demise to your business. With the absence of these required procedures you will never be able to know how much your profits are or even if you have any profits at all or not.

We all know what the process of keeping and storing documents are called. They are Bookkeeping and Accounting.

Now, at a first glance both the processes might look the same to you. But these two are quite different from one another.

Let’s take a look at both of these processes and how different the two services really are.

 

Accounting:

In a general term it can be said that accounting is the process of recording and keeping track and analyzing, measuring and summarizing of financial transactions.

Accounting provides crucial information about expenditure, profit margin and also the owner equity.

The process also includes the summarization of the values of the assets of the business such as land, equipment and vehicles etc. it also summarizes and evaluates the liabilities such as the owners equity, loans or due payments.

This financial information is of tremendous importance for a business. These records will hold the history by which your business has prospered the way it did.

 

Bookkeeping:

Bookkeeping is another way of keeping documents and storing them for future references. The nature of bookkeeping is similar to the process of recording and analyzing financial transactions, but it does not analyze all financial transactions. Rather it records and presents reports regarding all documents and transactions.

Bookkeeping Kingston also can include the process of creating financial statements for the business, showing the financial condition of the enterprise of a whole year.

The financial reports in bookkeeping are usually created with the information coming from the process of accounting.

It is also a crucial part of maintaining order within the business.

 

Bookkeeping Kingston:

The city of Kingston, Ontario is a city thriving with small and large scale businesses and entrepreneurs. This is a place where services such as bookkeeping can play a huge role in helping small businesses to create a business that can give something back to society.