Bookkeeping Objectives Understanding the bookkeeping objective will assist us in easily understanding the methods and types. Absolute transaction recording- It is concerned with keeping a complete and permanent record of all transactions in a systematic and logical manner in order to demonstrate their financial impact on the business. Determining the financial impact on the business- It is concerned with the overall impact of all transactions made during the accounting period on the financial position of the business. Bookkeeping System Types The two most common methods are single-entry and double-entry bookkeeping. While each has advantages and disadvantages, the business must select the one that is best suited to their needs. Accounting Software System of Single Entry Bookkeeping: a. The single entry bookkeeping system necessitates the recording of one entry for each financial activity or transaction. b. A single entry bookkeeping system is a basic system that a business can use to record daily receipts or generate a daily or weekly cash flow report. System of Double Entry Bookkeeping: a. Each financial transaction must be recorded twice in the double-entry bookkeeping system. b. The double entry system ensures checks and balances by recording a credit entry for every debit entry. c. The double-entry bookkeeping system is not based on cash. When a debt is incurred or revenue is earned, a transaction is entered. Bookkeeping Methods Bookkeeping Methodology Manual It is a traditional and paper-based method of bookkeeping. Transactions are manually recorded by hand using a paper book of accounts such as a journal-register, ledger books, and so on. This method is commonly used by small businesses with less complex business transactions. Cheaper and easier to maintain, but requires a lot of skill and time, and can be a tedious task at times. Bookkeeping Methodology Using Computers A novel approach to recording business transactions. For recording transactions, accounting and bookkeeping software such as Tally.ERP 9 is used. A simpler, faster, and more convenient method of recording business transactions. Eliminates the time-consuming tasks associated with manual bookkeeping. Financial reports that are reliable and accurate are possible.

1. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 1/13
Sample
Proposed Bookkeeping Methodology ( Best practices
suggested )
Thank you for your explanation regarding your business.
I have prepared herewith work methodology which would be best suited for your business based on
discussion we had during the call. This things are just based on our brief understanding of the business
Name of business Entity
Country of registration
USA
Software used by client
QuickBooks

2. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 2/13
Weekly Management snapshots
We can prepare a snapshot as
below
Monthly management report- We
provide below management
reports
Quarterly management report
since quantum of business is
low
Yearly management report
Suggested period for Management report
How is payables Managed? ( Accounts payables relates to bills payable by Organization and
paying vendors timely)

3. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 3/13
We can record all the payables and enter them one by one and prepare weekly report of payables
Payables would not be managed by Bookkeeper
Payables Methodology
Here is suggested payables Methodology
Management of payables

4. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 4/13
Here is a suggested payables methodology we can use
Payroll and Receivables management
Suggested software's to be used for payable
Dext

5. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 5/13
Benefits of payroll software
Software for payroll
ADP

6. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 6/13
Payroll software integrates with Accounting software
Payroll software does not integrates with Accounting software
Accounts receivable processing
Client enters the invoices into Quickbooks accounting software
Syncing of Payroll with Accounting software ( if using payroll software)
How is receivable managed?

7. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 7/13
Class Tracking - Class Tracking can help record the transactions via various business
strategic units
Class tracking is an opt-in feature that allows users to group expenses or invoices by location, department, or any other
meaningful segment of your business.
Accounts Receivable
Receivables management - how to do receivables management.
Payment Gateway is used- Reconciliation of payment gateway needs to be done
Industry specific things to take care
Ecommerce- Need to ensure that the money coming in is reconciled with the sales invoices
Is class tracking required
Not required
Sales tracking platform
Sales platforms consist of tools and integrations that help companies accelerate sales cycles and organize all sales
activity in one place. Tracking a lead's journey from their first interaction with a rep to a close or lost sale
Amazon

8. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 8/13
Service business- No inventory tracking required
Product business- Inventory tracking required
Inventory tracking
Tracking of Inventory is required for business who need to track their inventory and the
levels of inventory
Inventory Management Software: Keep track of every product you buy and sell & Get real-time inventory valuation
Advanced Accounting
Product or Service business
Inventory tracking
The process of a business continuously monitoring all of the inventory that it owns
Inventory tracking can be done with an add on accounting software

9. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41n… 9/13
Profit first
Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses,
costs, and taxes involved in sustaining the activity in question.
Yes- Organization uses Profit first

10. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41… 10/13
Create and file 1099s with QuickBooks Desktop
Yes- 1099 required to be filed
Indirect taxes Applicable
US- Sales tax-

11. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41… 11/13
Suggested to create and import budgets into QuickBooks /Xero or other accounting software
Yes
Forecasting Report
The Forecast Overview Report tells you what your company’s monthly forecasted income and expenses are for a particular
time period that you select.
Yes- recommended for client

12. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41… 12/13
Required Cash flow statements
A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives
from its ongoing operations and external investment sources
Yes- Should make monthly cash flow statements
Statement of financial position
The statement of financial position is another term for the balance sheet. The statement lists the assets, liabilities, and
equity of an organization as of the report date. As such, it provides a snapshot of the financial condition of a business as
of a specific date
We shall prepare detailed statement of financial position on Monthly basis
Detailed Income statement
An income statement is a financial statement that shows you the company's income and expenditures. It also shows
whether a company is making profit or loss for a given period. The income statement, along with balance sheet and cash
flow statement, helps you understand the financial health of your business
We shall prepare a detailed income statement and submit on a monthly basis

13. 5/21/22, 3:15 PM Proposed Bookkeeping Methodology ( Best practices suggested )
https://docs.google.com/forms/d/1pmmDm82OstTSVLbaQc48PFEpqN9wPBz-oc6zJRMEysw/edit#response=ACYDBNhjANcRKgL-Jp7sTTluvSYt41… 13/13
I note that you want to ensure that receivables are followed up on a timely basis and we shall ensure follow-
up of receivables with QB online on a timely basis.
This form was created inside of Meru Accounting.
Reconciliation of balance sheet accounts loan accounts and other accounts
Loan reconciliation is the process of analyzing loan product data such as total files, files receive, files not received, status,
etc.
Yes- There are multiple accounts on balance sheet to be reconciled
Additional bookkeeping things to be taken care of
Forms