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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 one of the main jobs of this type of bookkeeper is to monitor the journal entries that the company would be providing him. Journal entries are extremely important because they would actually monitor the operations of the business on a daily basis. It is for this reason that the contractual accountant has to make sure that the journal entries are done properly so that the creation of the other documents later on will go smoothly.
Of course aside from that, he will also have to work with the ledger accounts. After the journal entries have already been made, then the next thing to do would be to make the ledger accounts. Of course the contractual accountant will also have to check the work of this resident accountant in order to prepare the documents for auditing.
When that is done, then the company accountant would have to make a trial balance for the preparation of the financial statements. Now in order to save time, it is usually the contractual accountants or bookkeepers who will be doing doing the financial statements for the client. It is because they know how the government would want businesses to present their financial statements.
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.
The second financial statement that will be made would actually be the statement of equity which deals with the capital. In a nutshell, this statement will be illustrating what the changes in the capital of the business would be. It would show the net income plus the additional investments minus the withdrawals.
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.
Upon the creation of the three financial statements, the bookkeeper will now be able to pass them for the auditing process. So basically, these things are the bookkeeping and accounting services that the firm will be providing for private clients. If one has the accounting skills, then he will definitely be able to do a good job here as the tasks that are done will be easy for accounting majors.
Now one of the main jobs of this type of bookkeeper is to monitor the journal entries that the company would be providing him. Journal entries are extremely important because they would actually monitor the operations of the business on a daily basis. It is for this reason that the contractual accountant has to make sure that the journal entries are done properly so that the creation of the other documents later on will go smoothly.
Of course aside from that, he will also have to work with the ledger accounts. After the journal entries have already been made, then the next thing to do would be to make the ledger accounts. Of course the contractual accountant will also have to check the work of this resident accountant in order to prepare the documents for auditing.
When that is done, then the company accountant would have to make a trial balance for the preparation of the financial statements. Now in order to save time, it is usually the contractual accountants or bookkeepers who will be doing doing the financial statements for the client. It is because they know how the government would want businesses to present their financial statements.
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.
The second financial statement that will be made would actually be the statement of equity which deals with the capital. In a nutshell, this statement will be illustrating what the changes in the capital of the business would be. It would show the net income plus the additional investments minus the withdrawals.
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.
Upon the creation of the three financial statements, the bookkeeper will now be able to pass them for the auditing process. So basically, these things are the bookkeeping and accounting services that the firm will be providing for private clients. If one has the accounting skills, then he will definitely be able to do a good job here as the tasks that are done will be easy for accounting majors.
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