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.
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.
So of course the first thing that these bookkeepers would be doing would be to prepare the income statement. For those who do not know, the income statement is the report that will showcase the income versus the expenses of the company. If the income is more than the expense, then the company has a net income but if it is the other way around, the company has a net loss.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other 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.
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.
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.
So of course the first thing that these bookkeepers would be doing would be to prepare the income statement. For those who do not know, the income statement is the report that will showcase the income versus the expenses of the company. If the income is more than the expense, then the company has a net income but if it is the other way around, the company has a net loss.
The next financial statement that is made after the income statement would be the equity statement. In a nutshell, this statement is the one that shows how the capital changes over time. Basically, the beginning capital would include the addition of the net income, subtraction of withdrawals, and addition of other 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.
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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