How to Accounting & Bookkeeping Service in India

Accounting and Bookkeeping

Accounting is the fundamental function of every organization which includes financial transaction.
Proper accounting system helps organization to ascertain profit or loss and also a financial position.
An accountant is a person who prepare reports from the information contained in the financial transactions.
Accounting is known as the measurement, processing and communication of financial information about economic entities which measures the results of an organization’s economic activities.

Management Accounting helps the managers to get informed about the provisions of accounting information which helps them in taking decisions within the organisation.

Cost Accounting is an accounting system which records all the cost incurred in a business to improve its management in an organisation.

Financial accounting is concerned with analysis and reporting of financial transactions of any business.
It also helps in preparing financial statements of every organisation.
Financial accounting is prepared according to Indian Accounting Standard(IAS), International Financial Reporting Standards (IFRS) in IAS.
According to the Indian Accounting Standard, presentation of the financial statement includes
Statement of income statement and financial statement
Statement of cash follow
Statement of changes in equity
Relevant disclosure and notes
financial statement of stakeholders.

Bookkeeping plays a vital role in process of accounting and records the of every organization.
Bookkeeping include transactions such as purchases, sales, receipts and payments by an individual person or an organization.
The book keeping system help to prepare the financial statement of the firms which start with double entry of the financial transaction as double entry is known to be the basic of the accounting.
Book keeping is the known as the basic activity of the accounting system.
Bookkeeping is performed by a bookkeeper who records the day-to-day financial transactions of an organization and is responsible for writing the daybooks which include transaction such as purchases, sales, receipts, and payments

Single-entry accounting is a method in which financial transactions are recorded in form of single entry in a log.
Transaction to be recorded in Single-entry System:
Taxable incomes
Tax-deductible expenses
Cash

Double-entry bookkeeping is an accounting system in which every entry is made with a corresponding and opposite entry in a books of account. The double-entry system has two equal sides known as debit and credit where the left-hand side is debit and right-hand side is credit.
Double entry bookkeeping system is popular all over the world.
Transaction to be recorded in Double Entry Bookkeeping system

ACCOUNTING	BOOKEEPING
Accounting refers to process of ascertaining the financial position of an organisation.	Bookkeeping refers to the process of identifying and recording financial transactions.
In accounting decision making power is in hands of management who makes decision with the data obtained from accounting.	In Bookkeeping decision making power is not possible with the data obtained from bookkeeping.
Preparation of financial statements are vital part of accounting.	Preparation of financial statements is not done in the process of Bookkeeping.
In case of accounting, analysis is done for creating business insights.	In Bookkeeping no analysis is done
In accounting, high level learning is required for financial analysis.	In Bookkeeping no high level learning is required.
Accounting depicts the financial position of the company	It does not depict the financial position of the company
The person who deals with accounting is known as accountant.	The person who deals with bookkeeping is known as bookkeeper.

Helps to ascertain the profit or loss resulting from the business operation.
Helps to measure the financial position of an organisation by making proper valuation of the assets, capital and liabilities. •
Helps to ascertain the exact amount of the debtors and creditors of a firm for a certain duration.
It helps to analyse the economic soundness of a firm or company.
It helps to determine the tax liability
like sales tax, VAT, income tax etc. for ascertaining the total sales and net income of the year.
Helps to facilitate the auditing of the books of account.
Helps to submit evidence in the courts

It does not provide non-monetary information like government policies, political situations, strike and movements etc., which affect the financial soundness or stability of a firm
It cannot be used uniformly by the all the organization in process of valuation of stock or at time of charging depreciation and maintaining provisions etc.
It ignores the changes in the price level as the prices of goods and services are frequently changes
It does not recognize the real value of the nominal assets like patents, trademark, preliminary expenses etc., and also do not depict the real position of a firm or company.

Nowadays accounting software is used for doing the work of bookkeeping system and accounting which is done manually with help of the ledger system which completes the works quickly in a cost effective manner and on correct time.
Every organization perform accounting and bookkeeping system with the help of the excel sheet of micro soft office which will make work cost effective.
Many firms develop their own accounting software for their accounting and bookkeeping system which is more relevant for every organization.