Bookkeeping Services Including Income Tax Preparation in Manhattan

by | Oct 8, 2012 | Taxes

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Bookkeeping is a service that will help with all the client’s needs in keeping track of finances. Income Tax preparation in Manhattan will organize transactions such as sales and purchases, income and payments. Bookkeepers are not accountants but do keep books until the accountant requires them for financial statements.

Bookkeepers are people that will record your business´s finances and are responsible to keep all transactions written correctly in your books. By law every business needs to have up to date books so when questions are asked they can be answered easily. It is a very important part of getting prepared for your annual income tax preparation in Manhattan.

Receipts and deposit slips are collected and written into a book of accounts, also known as a ledger. If you balance your check book this is similar to what bookkeepers do. Every transaction is placed into a column and at the end of each month the books columns are then balanced to make sure all the amounts are correct. There are always checks being made to ensure the books are on track and still balancing. An unadjusted trial balance is made and this is a three column list. Column one is the names of the accounts, column two is a debit column and column three is a credit column. The debit and credit columns are totalled and these totals should agree as they are an important part of income tax preparation in Manhattan. The debits and credits must equal which is known as double entry book keeping. If there is a mistake the totals will not agree and the bookkeeper will have to retrace and recalculate and fix the totals of the columns.

There are many different books that can be used to help keep track of your finances. Day books which are a record of day to day transactions, the details must be put into journals so it can be posted into the ledger. Petty cash books keep track of little amounts of cash used, such as coffee, supplies for the office, and postage. Journals are records of debits and credits which make it easier to refer to later on. The detail contained in these books is what is used to do income tax preparation in Manhattan.

There are two types of common entry systems. Single and double entry; single entry is what a person using a check book would use, simply incoming and outgoing finances, double entry is written in at least two different ledgers which makes tracking errors easier.

The ledgers are kept up to date to show sales, purchases and a general book that contains assets, liabilities, equity, income and expenses. A sales ledger contains financial transactions that customers make to your business and purchase ledgers contain what your business purchases.

Income tax preparation in Manhattan will make sure that your businesses books are totalled and equal in the case where audits are needed. Contact Robert A. Woloshen CPA, PC in New York City and avoid costly mistakes by having a bookkeeper that will work with you and your business.

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