What is bookkeeping?
Bookkeeping requires a lot of accuracies. It is the process of keeping a record of the day-to-day financial transactions of your business. Bookkeeping ensures that the financial transactions of your business are easy to comprehend and up-to-date.
Tasks involved in bookkeeping
Bookkeeping ensures keeping track of the numbers involved in a business in an organized way. It is useful for individuals and non-profit organizations as well. Below are a few mentioned transactions that need to be mentioned by a bookkeeper
- Loan payments
- Expense payments to suppliers
- Financial report generation
- Customer payment invoices
- Monitoring asset payments
The importance of bookkeeping
Thorough bookkeeping is important for businesses of all sizes. As easy as it seems to be, bookkeeping becomes a complicated task when tax, assets, loans and investments are introduced.
Tracking financial activities of a business is the most crucial role of a bookkeeping service. A business owner is able to track the up to date incoming and outgoing amounts.
Every transaction that has been made has to be documented. Such transactions may include, sales invoice and receipt, sales payments, Supplier and bank payments. All these documents are important and help maintain accurate records during an audit.
Bookkeeping options in recent times
Bookkeeping during the earlier days was done using excel sheets and multiple ledgers. With technological advances, a variety of software is available for the purpose of bookkeeping. There are online applications that are available with unlimited storage back up.
Virtual bookkeeping has also taken over the market and is in high demand. A virtual bookkeeper will be available to you all through the year, unlike an in-house bookkeeper. There is also an increase in revenue and a reduction in cost when you appoint a virtual bookkeeper.