Bookkeeping

The client provides documents including bank statements, copy of invoices and bills, payroll summary to the CPAs (Certified Public Accountants) and they in turn maintain the books of accounts for the clients. The accounts are typically maintained using accounting applications like QuickBooksT and PeachtreeT. Usually accounts are maintained on a monthly basis but depending on the size of the business it can also be done on quarterly, half yearly or annual basis.

Financial Statements

Preparing financial statements is an extension of the bookkeeping function. The clients sometimes maintain books themselves and require financial statements to be prepared by a CPA, or they assign both the functions to the CPA. These statements are prepared using US GAAP and other relevant accounting and auditing standards.

Account Reconciliation

Account Reconciliation services include the final review of the books of accounts. After all the transactions have been taken care of for a financial year/period, the CPA does the reconciliation of the same. Account reconciliation is treated as a separate CPA function.

US GAAP Reporting Drafts

US GAAP require checks and reports on whether the books are maintained according to the Generally Accepted Accounting Principles. It can be treated as an auditing and attestation function.

Account Setup

Account Set-up is the creation of books from scratch for a new company or in new accounting software from any accounting software used previously. Account Set-up includes creating chart of accounts, data entry of company information and details about vendors, customers and employees.

Bank Reconciliation

Bank Reconciliation may be treated as a part of General Accounting function or it can be treated as a Separate function. It includes reconciling the bank accounts at the end of each period, which could be a month, a quarter, or a year.

Financial / Operational Budget

The CPAs as per their clients' requirements also prepare Financial and Operational Budgets. The budget period varies i.e. month, quarter or year. They also track the difference between the actual figure and the budgeted figure and try to investigate the reason for the difference.

Accounts Payable / Receivable Management

Accounts Receivable / Payable Management may be treated as a separate accounting function. It includes tracking the accounts receivable and accounts payable separately, preparing the agewise summary etc.