Bookkeeping- What is it?

Simply defined bookkeeping is keeping and maintaining daily records of business financial transactions. Records that are important to note are the general ledger, daily cash sheet, and accounts payable ledgers.

Most business or business owners do not enjoy this mundane process but it is one portion of your business that if ignored can hurt you in the long run. If you put this task off it will become unmanageable, and inaccurate. I will always tell people to focus on what you do best "your business" and hire someone to do the accounting and bookkeeping. You might think you are saving a buck but unless you are and expert at this task you could be hurting yourself and your business.

Everyday bookkeeping only takes a little bit of time and will help you make data driven decisions with your business. It is very economical to hire someone to do this.

The main reasons records are kept are to track your money, financial performance, and help you plan to goal or forecast. Also this information is necessary to complete the business tax returns correctly and to produce P & L statements.