Bookkeeping is recording, organizing, and managing the financial transactions of a business. It’s the process of tracking income, expenses, and other financial activities to maintain accurate financial records.
Bookkeeping is vital for a company to remain compliant with regulations and understand its financial health. A good bookkeeper can:
- prepare the required financial statements you need
- craft custom reports and dashboards
- manage your Accounts Payable and Accounts Receivable
- categorize transactions properly
Why Do I Need Bookkeeping?
Proper bookkeeping will allow your business to stay organized and on top of your finances, avoiding costly mistakes. It also empowers more informed decisions and planning — and makes tax time easier with all your books in order.
Whether you’re a solopreneur, you have a bookkeeper on staff, or you outsource to a professional bookkeeper, you use bookkeeping! While bookkeeping is clearly essential, what does it actually entail?
What Are the Key Components of Bookkeeping?
The basics of bookkeeping come down to assets (what you have), liabilities (what you owe), income and expenses (what you make and what you spend), and equity (the value of your company). Having a clear and accurate picture of these areas gives your company insight into your financial health, a clear view of your profitability, and helps your company assess growth over time. Maintaining accuracy in each area creates better reporting which leads to better understanding and informed decision making.
What Software is Used?
Some businesses keep handwritten records, some work in Excel, and some choose to work with accounting software such as QuickBooks, Sage Intacct, Wave, or Xero. Just Honest Bookkeeping is proud to maintain accounting software certifications as well as proficiency in Excel.
Is Outsourced Bookkeeping Right for My Business?
For bookkeeping services tailored to your needs, whether you are just setting up your books at the start of your business venture or your books need a complete cleanup and overhaul, Just Honest Bookkeeping has the plan for you. Focus on the day-to-day of your business assured that the details of your business’s finances are being recorded accurately. Book your free consultation with Just Honest Bookkeeping today!
Keep an eye out for more Bookkeeping Basics and other informational content covering all areas of bookkeeping.