What is Bookkeeping?
Bookkeeping is defined as the recording of all financial transactions of a business. It is part of a business accounting process. Bookkeeping can be done daily, weekly, monthly, or yearly. There are certain task that are to be done every day, week, month and year. Some of those tasks include running payroll, making deposit, reviewing inventory if the client has it, running financial reports, reconciling bank accounts.
Why is bookkeeping so important?
Bookkeeping gives companies a reliable measure of their performance. Bookkeeping provides information on general strategic decisions and a benchmark for its revenue and income goals. It is crucial for businesses to keep good records of every penny spent. Bookkeeping gives external users (investors, financial institutions, or the government) access to reliable information to make better investment or lending decisions.
By: Adam Tifone from Tifones Bookkeeping Services