Bookkeeping/Accounting services

Bookkeeping refers to the day-to day systematic entry of transactions from the source documents giving the details such as date, amount, address, name etc. It enables the entered transactions to give the financial statements such as Balance sheet, Profit & Loss a/c and Cash flow statements.

Accounting gives a bigger picture. It is the system that keeps track of the data, including people and the history of recorded transactions. It takes the information provided by the bookkeeping process to give final statements, analyze them and help the management in taking decisions.

We provide you with a range of Bookkeeping /Accounting services which will keep you at the top of your business financial issues. We offer these services to Individuals, Proprietorship, Partnerships, Trusts, Companies, Corporations, Non profit organizations and for all other legal entities. We can work at your premises, provide on-line services, or can work at our office as per your convenience on a daily basis, weekly, bi-weekly, monthly or yearly basis. We work as your complete Bookkeeping/Accounts back office and help you to concentrate in achieving the main object of your business. We provide bookkeeping/ accounting services mainly to Canada and US. The services we provide are given below.

Accounting set-up services

Our qualified team of Certified Public Accountants (CPA), Chartered accountants and CGA finalist and other qualified professional understand the needs of the business and the statutory reporting and compliances. Accordingly, we help the client in setting up the complete accounting set-up right from maintaining the source documents, to pass the journal entries, prepare complete financial statements such as Balance sheet, Profit and Loss account and Cash flow statement. We further help the client in filing the tax returns and analyzing the financial statements to help the business grow and in decision making. Through outsourcing, the client’s cost is considerably reduced and he is able to concentrate on the core areas of the business. We can use accounting software as per your preference such as, Simply Accounting, Quickbooks,Peachtree, MyOB, Netsuite, Creative solutions, Business Works etc.

Accounts write-up

We record all the financial transactions of the business by way of entering the journal entries in the books of accounts. It includes maintaining and keeping record of various accounting day-to-day books including

• Purchase ledger
• Sales ledger
• Cash ledger
• Bank ledger
• General ledger
• Assets ledger
• Suppliers ledger
• Customers ledger
• Other books as per the requirements

Accounts Payable

The client receives invoices at various locations as they are geographically distributed; hence it is extremely difficult for the accounts department to ensure that all invoices are paid accurately and on time. We, at AFS, help to gain control over the process and manage it from any location. Usually the following procedures are followed -

• Ensuring that the requisitions are pre-numbered and approved.
• Purchase orders are pre-numbered and approved.
• Inspect receiving report and matching with purchase order.
• Vendors invoice received is matched with requisition receipt, purchase order and receiving.
• Pre-numbered vouchers are prepared for each invoice.
• Purchase journal entry is passed and accounts payable file is updated
• Daily purchase summary is posted to general ledger.
• Reconciling general ledger with accounts payable ledger.
• Processing payable quickly to take advantage of supplier discounts
• Understanding liabilities and managing working capital.
• Proper care is taken for goods returned, debit memos, difference in quantity received and ordered.
• Ensuring that invoices are paid in time and with proper authorization.

Account Receivable Services

The client raises invoices to its customers from various locations and therefore it is necessary to ensure a proper internal control process to raise proper invoices, accounting for it and ensuring timely collections to have a smooth flow of working capital to run the business. The procedures vary depending upon the size of the organization and the nature of the business. Procedures we follow are as given below.

• Checking that the sales orders are pre-numbered and properly approved.
• Checking that the goods are supplied to customer within the allowed credit limit.
• To check if the goods are dispatched as per the sales order.
• To Check invoices are properly made and raised to the customers.
• To check if all shipping documents are pre-numbered and are properly invoiced.
• Accounts receivable ledger is updated and the sales entries are posted in the general ledger.
• To check that the payments are received in time else interest is charged for the delay.
• Proper accounting is done for goods returned, credit memos issued etc.
• The received payments are deposited in the Bank in time.

Bank Reconciliation Statement

It is the statement prepared to reconcile the Bank balance as per Bank statement with the Bank balance as per the records of the organization on a particular date. The object of the Bank reconciliation statement is to ascertain that the transactions in the books of the organization are completely and accurately recorded. This also helps in ascertaining that all the payments deposited in the Bank have been cleared and if there are any returned checks, they are properly recorded in our books. Further it also helps in determining that the only checks issued by the Company have been cleared and no wrong debits have been made to the Bank statement. This further helps in keeping our Books of Accounts reconciled as well as our vendor and customer accounts are also updated and reconciled.

Trial Balance

Trial Balance is a statement in which the balances of all ledgers are compiled into debit and credit columns. All assets, liabilities, income and expenditure accounts are reflected in this statement. The preparing of the Trial Balance helps in the preparation of Balance sheet and Profit & Loss account. Further it also helps in determining that accounts are opened under the relevant group heads. For example, cash balance should be under the group head – Current Assets. However, even after the tallied trial balance there are possibilities of errors in the books of accounts. Those errors usually get corrected at other stages of Accounting/Auditing/Reconciliation of Accounts.

Balance sheet

Balance sheet shows the assets and the liabilities of the company at a particular date. It shows the sources of funds (owner’s funds, long term or short term loans, advance from customers and other current liabilities) and the application of funds, i.e., where the funds have been utilized ( fixed assets, stocks, account receivables, investments, advance to suppliers etc.). Balance sheet shows the net worth of the company and helps in financial analysis and decision making processes like debt equity ratio, working capital ratio, long term/short term investment decisions and various other analysis as per the requirements of the business.

Profit & Loss Statement

Profit and Loss statement shows the income and expenditure of a business during a particular period of time resulting in net profit or loss of the business. It is also termed as Income & Expenditure statement. It shows the profitability or loss of the business and helps in taking the various financial decisions like to continue with the same line of business or to add new ones, which product line gives how much profit or loss, stock holding period, gross profit margins, return on investments, fixed or variable expenditures and various other analysis as per the requirements of the business.

Cash flow statement

It shows the sources and the application of cash over a period of time. It summarizes the net increase or decrease in cash for a particular period. It helps the management, investors, creditors and financial institutions to understand the liquidity of the company for current operations as well as for budgeting and forecasting.

Inventory Management

Inventories of goods must be periodically counted, valued and recorded in the Books of Accounts of the business. Inventories generally include stock held for resale, raw materials, work-in-process, finished goods, goods in transit, consigned goods. Cost included in inventory are the sum of all expenditures like purchase price, freight inward etc., in bringing the goods to the condition and location so that they are ready for sale. In case of manufacturing goods, the cost of inventory includes direct materials, direct labor and manufacturing overheads. Inventory is valued as per the accounting standards but the most common rule is cost price or realizable value whichever is less.

The benefits to properly record and control the inventory are
• It helps to determine the true profit or loss of the business.
• Helps in classifying the inventory as fast moving, slow moving, obsolete or damaged goods.
• Helps to determine what to produce and how much to produce.
• Helps in determining the working capital requirements.
• Helps to observe the physical inventory and compare it with inventory records so as to detect the possibilities of theft, errors or frauds.
• Helps to sales forecasting and production planning.

Fixed Assets Ledger maintenance

The property, plant & equipment etc, usually with service life greater than one year used in the business are termed as Fixed Assets (Non-Current Assets). The major functions associated with these assets are

• Purchases are properly authorized and correctly recorded in the Books of Accounts.
• Detailed information concerning each asset is kept in the asset ledger such as asset description, identification number, location, purchase price, acquisition date and depreciation.
• Assets should be physically available and matched with the asset ledger account so as to safeguard from theft, or unauthorized disposition.
• To ensure that the assets are retired with proper authorization and documentation.
• To ensure assets purchased have been capitalized and not charged to repairs and maintenance account.
• Maintenance of complete Books of Accounts- as per Statutory requirements