Bookkeeping Explained

We all have heard the term "bookkeeping" but what exactly is bookkeeping and how does this affect your business?

In a nutshell, bookkeeping is the process of accurately tracking income and expenses that flows through your firm and serves two main purposes: Record transactions that occurred in your business and to get your books ready for tax preparation. Bookkeepers perform tasks including, but not limited to:

  1. Categorizing transactions

  2. Matching receipts to transactions

  3. Maintaining the Chart of Accounts

  4. Running payroll

  5. Reconciling bank and credit card accounts

  6. Filing various taxes and reports

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The Chart of Accounts

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