Bookkeeping

Bookkeeping

So, how is the accounting and bookkeeping department doing? What do these individuals do on a daily basis?

Payroll is one of the most important things they do for everyone who works there. Every employee's salary and taxes earned and paid during each pay period must be recorded. The payroll department is responsible for ensuring that all applicable federal, state, and local taxes are deducted. These taxes are recorded on the pay stub that comes with your paycheck. They typically consist of income taxes, social security taxes, and employment taxes that must be paid to the federal and state governments. Personal deductions, such as those for retirement, vacation, sick pay, or medical benefits, are also permitted. It serves an important purpose. Some businesses have in-house payroll departments, while others outsource it to specialists.

The accounting department receives and records any payments or cash received from the company's customers or clients. The accounting department must ensure that the funds are correctly sourced and deposited in the appropriate accounts. They also control where the money goes, such as how much is kept on hand for things like payroll, and how much goes out to pay what the company owes its banks, vendors, and other creditors. Some should be invested as well.

The payables area, or cash disbursements, is the inverse of the receivables business. Throughout the year, a company writes numerous checks to pay for purchases, supplies, salaries, taxes, loans, and services. The accounting department prepares all of these checks and keeps track of who received them, how much was paid, and for what. Accounting departments also keep track of inventory purchase orders, such as products sold to customers or clients. They also manage assets such as a company's property and equipment. This includes the office building, furniture, computers, and even small items like pencils and pens.