Bookkeeping Services

What Is Bookkeeping?

All businesses are required by law to keep accurate records. Bookkeeping is the process of keeping full, accurate, up-to-date business records. The two main goals of bookkeeping are:

• to keep track of income and expenditure
• to collect necessary financial information for government and regulatory bodies, investors, banks, etc

There are many types of bookkeeping systems, some are done manually by hand on ledger sheets and others use accounting software.

People assume that bookkeeping and accounting are one and the same but this is incorrect. Bookkeeping is a function of accounting, the process of recording and classifying business financial information. Accounting on the other hand involves the task of interpreting the information to manage the financial affairs of a business or individual.

What do bookkeepers do?

Bookkeepers handle all financial record keeping activities for businesses. They monitor a company's cash flow, billing and lines of credit. Bookkeepers work closely with accountants. Statements and reports are prepared by the bookkeeper and given to the accountant for final verification.

Some of the tasks of bookkeepers include:

• posting accounts receivable and payable
• recording payroll
• compiling reports and financial statements
• bank reconciliation
• purchasing supplies
• maintaining employer-related taxes.