Transactional Accounting in Manhattan
In the world of business, transactional accounting, sometimes referred to as clerical accounting, is widely considered to be the backbone of any department or firm that deals in accounts and finances.
Transactional accounting involves the tracking and recording of every transaction event that takes place within a business. These events are anything that represents the company’s cash flow, both incoming and outgoing.
Bovell Financial offers transactional accounting services in Manhattan for businesses that wish to bolster their performance and growth trajectory with concrete numbers and expert analysis. Contact us for help managing your company’s accounting functions.
How Does Transactional Accounting Work?
Generally, every activity that a business engages in ultimately generates cash, uses cash, or both. Depending on the activity, these results can be either direct or indirect.
For instance, manufacturing a product directly uses cash for the ordering of materials, parts, and labor. The product is then sold, directly generating profit. Meanwhile, the funds that are spent on ordering the materials directly uses cash. As this is not directly related to the conversion of the finished product, the cash eventually generated through the ordering process is indirect.
Keeping a detailed record of every transactional event throughout a company will paint a clearer picture used to measure current progress against past performance.
For example, using data from a previous year might show that you were once producing twice as much product as you are now with the same number of employees and resources. This can indicate a problem somewhere in production that should be investigated further.
The Benefits of Transactional Accounting
This type of accounting can be beneficial to a company in numerous ways. From understanding your financial strength to figuring out where your business’ weaknesses lie, the data gathered and recorded by Bovell Financial is an indispensable tool.
Transactional accounting can be used to:
This may be only one small part of a business’s accounting function, but this process is important not only for your company’s day-to-day operations but also as the backbone of the rest of your accounting needs.
Call Bovell Financial Today!
Bovell Financial takes a holistic approach to business accounting. From bookkeeping to consulting, our goal is to help you achieve yours. For over ten years, Jason Bovell has provided his expert services to businesses in Manhattan.
Contact our firm today to schedule a consultation, and find out how we can help make your dreams a reality.