Bookkeepers perform all manner of record-keeping tasks. Some of them include the following:

• They prepare what are referred to as source documents for all the operations of a business – the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production. 
• Bookkeepers also make entries of the financial effects into journals and accounts. These are two different things. A journal is the record of transactions in chronological order. An accounts is a separate record, or page for each asset and each liability. One transaction can affect several accounts. 
• Bookkeepers prepare reports at the end of specific period of time, such as daily, weekly, monthly, quarterly or annually. To do this, all the accounts need to be up to date. Inventory records must be updated and the reports checked and double-checked to ensure that they’re as error-free as possible. 
• The bookkeepers also compile complete listings of all accounts. This is called the adjusted trial balance. While a small business may have a hundred or so accounts, very large businesses can have more than 10,000 accounts. 
• The final step is for the bookkeeper to close the books, which means bringing all the bookkeeping for a fiscal year to a close and summarized. 

If GAAP are not the principles used for preparing financial statements, then a business needs to make clear which other form of accounting they’re used and are bound to avoid using titles in its financial statements that could mislead the person examining it. GAAP are the gold standard for preparing financial statement. Not disclosing that it has used principles other than GAAP makes a company legally liable for any misleading or misunderstood data. These principles have been fine-tuned over decades and have effectively governed accounting methods and the financial reporting systems of businesses. Different principles have been established for different types of business entities, such for-profit and not-for-profit companies, governments and other enterprises. 

GAAP are not cut and dried, however. They’re guidelines and as such are often open to interpretation. Estimates have to be made at times, and they require good faith efforts towards accuracy. You’ve surely heard the phrase “creative accounting” and this is when a company pushes the envelope a little (or a lot) to make their business look more profitable than it might actually be. This is also called massaging the numbers. This can get out of control and quickly turn into accounting fraud, which is also called cooking the books. The results of these practices can be devastating and ruin hundreds and thousands of lives, as in the cases of Enron, Rite Aid and others.

You balance your checkbook to note any charges in your checking account that you haven’t recorded in your checkbook. Some of these can include ATM fees, overdraft fees, special transaction fees or low balance fees, if you’re required to keep a minimum balance in your account. You also balance your checkbook to record any credits that you haven’t noted previously. They might include automatic deposits, or refunds or other electronic deposits. Your checking account might be an interest-bearing account and you want to record any interest that it’s earned. 

You also need to discover if you’ve made any errors in your recordkeeping or if the bank has made any errors. Another form of accounting that we all dread is the filing of annual federal income tax returns. Many people use a CPA to do their returns; others do it themselves. Most forms include the following items:

Income :

Any money you’ve earned from working or owning assets, unless there are specific exemptions from income tax. 

Personal exemptions :

This is a certain amount of income that is excused from tax. 

Standard deduction :

Some personal expenditures or business expenses can be deducted from your income to reduce the taxable amount of income. These expenses include items such as interest paid on your home mortgage, charitable contributions and property taxes. 

Taxable income :

This is the balance of income that’s subject to taxes after personal exemptions and deductions are factored in. 

Well, one thing they do that’s terribly important to everyone working there is Payroll. All the salaries and taxes earned and paid by every employee every pay period have to be recorded. The payroll department has to ensure that the appropriate federal, state and local taxes are being deducted. The pay stub attached to your paycheck records these taxes. They usually include income tax, social security taxes pous employment taxes that have to be paid to federal and state government. Other deductions include personal ones, such as for retirement, vacation, sick pay or medical benefits.  It’s a critical function. Some companies have their own payroll departments; others outsource it to specialists.

The accounting department receives and records any payments or cash received from customers or clients of the business or service. The accounting department has to make sure that the money is sourced accurately and deposited in the appropriate accounts. They also manage where the money goes; how much of it is kept on-hand for areas such as payroll, or how much of it goes out to pay what the company owes its banks, vendors and other obligations. Some should also be invested. The other side of the receivables business is the payables area, or cash disbursements. A company writes a lot of checks during the course of year to pay for purchases, supplies, salaries, taxes, loans and services. The accounting department prepares all these checks and records to whom they were disbursed, how much and for what. 

Accounting departments also keep track of purchase orders placed for inventory, such as products that will be sold to customers or clients. They also keep track of assets such as a business’s property and equipment. This can include the office building, furniture, computers, even the smallest items such as pencils and pens.

The beginning balance of prepaid expenses is charged to expense in the current year, but the cash was actually paid out last year. this period, the business pays cash for next period’s prepaid expenses, which affects this period’s cash flow, but doesn’t affect net income until the next period. Simple, right?  As a business grows, it needs to increase its prepaid expenses for such things as fire insurance premiums, which have to be paid in advance of the insurance coverage, and its stocks of office supplies. Increases in accounts receivable, inventory and prepaid expenses are the cash flow price a business has to pay for growth. Rarely do you find a business that can increase its sales revenue without increasing these assets.

The lagging behind effect of cash flow is the price of business growth. Managers and investors need to understand that increasing sales without increasing accounts receivable isn’t a realistic scenario for growth. In the real business world, you generally can’t enjoy growth in revenue without incurring additional expenses.

Litigation support represents the factual presentation of economic issues related to existing or pending litigation.  In this capacity, the forensic accounting professional quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes, even before they reach the courtroom.  If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.      

Investigation is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred.  As part of the forensic accountant’s work, he or she may recommend actions that can be taken to minimize future risk of loss.  Investigation may also occur in civil matters.  For example, the forensic accountant may search for hidden assets in divorce cases.

Forensic accounting involves looking beyond the numbers and grasping the substance of situations.  It’s more than accounting…more than detective work…it’s a combination that will be in demand for as long as human nature exists.  Who wouldn’t want a career that offers such stability, excitement, and financial rewards? In short, forensic accounting requires the most important quality a person can possess: the ability to think.  Far from being an ability that is specific to success in any particular field, developing the ability to think enhances a person’s chances of success in life, thus increasing a person’s worth in today’s society.   Why not consider becoming a forensic accountant on the Forensic Accounting Masters Degree link on the left-hand navigation bar.

Most profit smoothing involves pushing some amount of revenue and/or expenses into other years than they would normally be recorded. A common technique for profit smoothing is to delay normal maintenance and repairs. This is referred to as deferred maintenance. Many routine and recurring maintenance costs required for autos, trucks, machines, equipment and buildings can be delayed, or deferred until later. A business that spends a significant amount of money for employee training and development may delay these programs until the next year so the expense in the current year is lower.A company can cut back on its current year’s outlays for market research and product development.

A business can ease up on its rules regarding when slow-paying customers are written off to expense as bad debts or uncollectible accounts receivable. The business can put off recording some of its bad debts expense until the next reporting year. A fixed asset that is not being actively used may have very little current or future value to a business. Instead of writing off the un-depreciated cost of the impaired asset as a loss in the current year, the business might delay the write-off until the next year.

You can see how manipulating the timing of certain expenses can make an impact on net income. This isn’t illegal although companies can go too far in massaging the numbers so that its financial statements are misleading. For the most part though, profit smoothing isn’t much more than robbing Peter to pay Paul. Accountants refer to these as compensatory effects. The effects next year offset and cancel out the effects in the current year. Less expense this year is balanced by more expense the next year. 

Clinical depression however, or as some might call as ‘major’ depression, is actually the medical term for depression. Actually clinical depression is more of a disorder rather than an illness since it basically covers only those who are suffering from symptoms related to depression. Clinical depression is how doctors usually refer to “depression” when giving a diagnose of their patient. It’s basically just a medical term.

However, in spite of being an actual disorder, Clinical depression may well be treated. Doctors are actually highly optimistic that their patients who are suffering from Clinical disorder will be well on their way towards good mental health as long as they treated as soon as they have been diagnosed with Clinical depression. Patients who have been seeking for treatments for Clinical depression have proven to be quite successful in their quest, given that 80 percent of actual Clinical depression patients have been treated and has somewhat found relief from their disorder.

Depression oftentimes can easily get in the way of an individual’s daily activities and his or her’s normal functions, one’s zest for life can quickly and easily dissipate due to depression. And in place of an individual’s sunny disposition is more or less a person who hates his or herself, having no self-confidence, trying to isolate one’s self from the world and basically just not caring about living any more. More so, a person suffering from depression isn’t the only one who’s going to suffer from this destructive illness, his or her loved ones are sure to follow suit. By seeing the individual grow through such rough patches, basically not caring about anything or anyone anymore, it’s highly likely that not only will depression one’s relationship with one’s self but with his or her loved ones too. Fortunately depression can now be cured, especially when diagnosed early, depressed individuals can actually be treated through therapy and medication, although it may be a bit costly, a person’s good mental health is something that shouldn’t be scrimped on. Cognitive behavioral talk or interpersonal talk are just some of the available psychosocial treatments that cognitive behavior therapists can offer to their patients, both actually prove to be able to produce fruitful and positive results.

Still, people tend to not recognize depression even it’s right before their eyes, being honest with one’s self is key to being able to cure such an illness. Never overlook the various symptoms, depressed individuals oftentimes exhibit uncharacteristic behaviors such as suddenly lacking interest in one’s hobbies (or other stuff that he or she usually enjoys), sleeps too much or actually aren’t able to get some shut-eye, suddenly becoming anti-social, talks a lot about death or being a worthless person. There are actually a lot more other symptoms but in case these already fit in your category or of someone that you know of, go to a reputable psychiatrist at once in order to see if the depression is still at an early stage or not. From here you’ll be able to assess how the treatments will actually go.