Complete Guidance For Bookkeeping In Canada

What do you know about bookkeeping? Some people believe that bookkeeping requires a very advanced level of financial knowledge, but actually, it does not. BG Accounting and Business Solutions will provide all the information regarding bookkeeping with ease, including
  • The importance of bookkeeping
  • Methods of bookkeeping
  • How to record entries in bookkeeping
So, let’s start the blog!

What is bookkeeping, and why is it important?

Bookkeeping is the method of recording your organization’s financial transactions into organized accounts on a regular basis. It also refers to the different recording techniques businesses can use. Bookkeeping is an important part of your accounting process for a few reasons. When you keep transaction records updated, you can generate accurate financial reports that help measure business performance. Detailed records will also be very helpful in a tax audit. BG Accounting and Business Solutions offer a full range of bookkeeping in Canada and accounting services that will suit all your needs and make your business run more effectively and efficiently.

What are the different methods of bookkeeping?

Before you start bookkeeping, your business must decide which method you are going to follow. While choosing, you should consider the number of regular transactions your business has and the amount of revenue you earn. If you have a small business, hard and complex bookkeeping designed for enterprise-level businesses may create problems for you. On the other hand, less perfect methods of bookkeeping will not serve large companies. Let’s look at the different methods of bookkeeping mentioned below:

Single-entry bookkeeping:

Single-entry bookkeeping mostly suits private companies and sole proprietorships that won’t buy anything on credit. It’s a simple method where a single entry is made every time for each transaction in your books. These transactions are recorded in your cash book to keep track of incoming revenue and outgoing expenses. You won’t need any kind of training for the single-entry system.

Double-entry bookkeeping:

Double-entry bookkeeping is perfect. It tracks the principle that all transactions affect at least two accounts, and they are recorded as debits and credits. In a double-entry system, the total entries should always be equal to the total debits. When this situation occurs, your books are balanced. Let’s take an example: if you make a sale for $20, your cash account will be debited for $20, and your sales account will be credited the same amount. So, this double-entry method is very useful if you have a large, public business that buys and sells on credit. People who have large businesses often choose the double-entry method because it has fewer chances of error. Our bookkeeping team is highly qualified and certified. They provide the hands-on care that your books need to make sure you are writing off everything possible and that your books are organized properly.

How do I record entries in bookkeeping?

Generating financial records like balance sheets, income statements, and cash flow statements helps you understand where your business stands and its overall performance. It is critical to have these reports maintained. The recording of transactions can be done with the source documents, including purchase and sales orders, bills, invoices, and cash register tapes. Once you gather all of your documents, you can record your transactions using journals or trial balance sheets. Good bookkeeping is important for good business management. Bookkeeping workshop provides detailed and accurate records for any kind of business, whether it is small or large. We at BG Accounting and Business Solutions offer full-cycle business bookkeeping services, such as,
  • Data Entry
  • Bank Reconciliations
  • HST, Payroll
  • WSIB
  • Inventory reconciliations
  • Year-end financials
  • Cloud services
  • Virtual accounting services
For over 12 years, our clients have benefited from our education-based approach toward their accounting matters and have since kept more of their hard-earned monies in their own pockets. We provide a wide range of bookkeeping services that cater to your personal and business needs. Our accounting and bookkeeping systems work around you. Whether you are a start-up and would like to manage your own books, someone used to shoebox accounting, or are interested in a cloud-based system, we have it ALL. If you want to book an appointment with our bookkeeping professionals, you can directly click on the button given below, or you can call us at our given numbers. We can also facilitate you with business registration, business taxes, disability tax credits, personal taxes, PREC, tax & real estate planning, and business consultation.