Bookkeeping is the methodical recording and classifying of financial transactions concerning
a business.
It ensures that the records of a company’s financial transactions are accurate, up-to-date,
and thorough. Due to this, precision is an important part of the bookkeeping process.
Bookkeeping allows for transparency in your business, as it shows you exactly where your
money is going and will alert you of any problems or discrepancies relating to your finances.
It also makes your business more efficient, as it can identify areas of the business where you
can cut costs, therefore saving you money.
Bookkeeping provides important information that is not only relevant to how your business
is performing, but is also important to the accounts process.
In bookkeeping, every transaction pertaining to your business is recorded, both purchases
and sales.
What Tasks Are Involved In Bookkeeping?
Bookkeeping is made up of a few different tasks, including…
o Sending/paying invoices
o Reconciling bank accounts
o Preparing financial statements
o Producing reports, such as accounts receivable and balance sheets
o Documenting and tracking your receipts/bills in some way or another
Some people confuse bookkeeping with accounting, and although bookkeeping is a part of
accounting, they are different things. Accounting refers to the overall process of managing,
processing, and measurement of financial data. In contrast, bookkeeping is more focused on
the practices involved with recording transactions.
Why Does Bookkeeping Matter?
While it may seem clear, detailed bookkeeping is vital for businesses of all sizes, no matter
the industry they are in. Though bookkeeping seems relatively straightforward at first, it can
quickly become complicated due to loans, taxes, investments, and assets being introduced.
This is just one reason why you may choose to use a qualified accountant or bookkeeper to
take care of your business’s finances, rather than do it yourself.
How Can Bookkeeping Be Done?
Thanks to technology and the continuous development of cloud accounting platforms, there
are lots of different options when it comes to bookkeeping.
Some people opt to use Excel spreadsheets, some people get an accountant to do it for
them and others use accounting software that allows them to manage their accounting on-
the-go, such as Xero or QuickBooks.
At Suzanne Lock Business Services, we offer accounting and bookkeeping services that are
tailored to our client's specific needs. We also are big fans of cloud accounting software,
particularly Xero.
We have lots of practice in assisting our clients with transitioning over to Xero, which is
super accessible for both us and our clients. As many will agree, it is so handy for both the
accountant and the business owner to have all financial information stored and backed up
by the cloud, and reachable in just a few clicks.
Thank You For Reading
Thank you for reading our article about what bookkeeping is and why it is so important. If
you’d like to have a chat about accounting, bookkeeping, or anything in between, then book a free 30-minute consultation with us today. We offer a wide range of services and we’d love to help you out.