Why Does a Business Need Accounting and Bookkeeping Services?
Accounting teaches us how to run a business. When an organization comes into existence, it deals with multiple business transactions with multiple stakeholders. The way of dealing with these transactions differs depending upon with whom they are transacted with. Any business deals with numerous customers, creditors, debtors every single second. Such a rapid increase of business transactions gives birth to accounting and bookkeeping. They are managed to create a healthy business climate, and also to avoid any unnecessary loss.
Generally, these terms turn out to be very confusing, and sometimes it is assumed to be the same but in the business world they are different. Bookkeeping refers to the simple recording of day-to-day business transactions. Accounting, on the other hand, is a broad umbrella that includes steps of recording, interpreting, classifying, analyzing, reporting and summarizing the financial data that gets recorded. Be it a multinational company or start-up, big firm or small firm, accounting and bookkeeping services act as a mainstay for their existence. Now, let’s have a look at their different types.
Types of Accounting and Bookkeeping
Accounting Types
Accounting is of two different types:
1. Financial Accounting
Deals with the information related to business stakeholders that comprise of stockholders, creditors, debtors, regulatory bodies, etc.
2. Managerial Accounting
Deals with confidential information of business that covers profits made, salaries, cost of production occurred, etc.
Bookkeeping Types
There are two different types of bookkeeping:
1. Single-Entry Bookkeeping
Every business transaction that takes place is recorded only once either as an income or expense. These are recorded in revenue and expense journal.
2. Double-Entry Bookkeeping
Every business transaction is recorded twice. It gets credited in one account and debited in another.
Types of Business Transaction Records
As mentioned earlier, an organization deals differently with different stakeholders. Thus, different types of business transactions get recorded:
- Paper or electronic receipts
- Details regarding payroll
- Details regarding purchases and sales
- Records that relate to tax collected and paid
Chartered Professional Accounting of Canada (CPA)
CPA is an organization that was formed with an aim of strengthening the Canadian Accounting Profession. It plays a strong role while dealing with international accounting, audit and assurance standards. Its vision is to establish itself as an accounting destination. CPA has set certain guidelines for organizations that have been prepared by the Financial Reporting & Assurance Standards Canada Boards, and have included them in the CPA Canada Handbook. This collection provides:
- CPA Canada Handbook-Accounting
- CPA Canada Handbook-Assurance
- CPA Canada Public Sector Accounting Handbook
- Other Reference Books
Domestic Standards Project Categories
The project for an organization setup has been set accordingly as per the domestic standards. The project categories are:
- New Standards
- Major Amendments
- Narrow-scope Amendments
- Annual Improvements
Canada’s Financial Reporting and Assurance Standard Boards and Councils
The Canadian reporting and assurance standards comprise of:
- Accounting Standards Oversight Council (AcSOC)
- Accounting Standards Board (AcSB)
- Public Sector Accounting Board (PSAB)
- Auditing and Assurance Standards Oversight Council (AASOC)
- Auditing and Assurance Standards Board (AASB)
Canadian Accounting Framework
In Canada, there exist different types of accounting frameworks for different types of business entities. The Canadian Accounting Standard boards (AcSB) sets all the accounting standards for business entities other than the public entities.
Also, let’s have a look at the different types of companies and the accounting framework that they follow:
Type of Business Entity | Reporting Framework |
Publicly Accountable Enterprises | International Financial Reporting Standards( IFRS) |
Private Enterprises | Accounting Standards for Private Enterprises (ASPE) |
Non-Profit Organizations | Accounting Standards for Not-For-Profit-Organization (NFPOs) |
Publicly accountable enterprises subject to a deferred IFRS adoption date | Pre-changeover accounting standards |
Public Sectors Entities | Public Sector Accounting Standards (PSAS) |
Business Setup Worldwide Accounting Services
Business Setup Worldwide is a business consultant that helps in company formation across national boundaries. BSW provides a wide portfolio of accounting and bookkeeping services that include:
- Payroll and personnel administration
- Bookkeeping and financial records
- Preparation of international tax Structure
- Real-time online bookkeeping flow
- Secure accounting data servers
- Audit reports, proper cash-flow management
- Budget variance analysis
- Working capital financing
- Compilation of financial statements
- Company performance reviews
Benefits of Availing Accounting and Bookkeeping Services
Accounting and bookkeeping services allow any company to know their transactional insights. Let’s have a look at the benefits that they provide to an organization:
- Transparent expense record is available anytime to cross-check
- Income or profits made by any source is easily traceable
- Act as a billing and expense tool
- Decision-making process for future gets simplified
- Keeps a track on all the business decisions made and the cost incurred with it
- Company budget can be created, viewed and controlled at any point
- Proper accounting and bookkeeping services ease the audit process
- This service presents a picture of the financial stability of the business
- The occurrence of any kind of malpractice can be easily tracked
Why Us?
Dealing with foreign accounting policies is a hectic and complex task. Business Setup Worldwide understands this process and molds it into a simpler one so that it gets easier for company establishment. Our business expert team comprises of Canadian designated CGA, International designated managers who hold ample industry experience and help to build out a framework to carry out the accounting processes. Apart from that, they also help in sorting out the legal proceedings that is a mandate for any business and is a crucial part of the business formation process. For any more details, feel free to contact us.
