True Bookkeeping
Bookkeeping is the process of recording daily transactions in a consistent way, and is a key component to building a financially successful business. Bookkeeping is comprised of:
Maintaining a general ledger is one of the main components of bookkeeping. The general ledger is a basic document where a bookkeeper records the amounts from sale and expense receipts. This is referred to as posting and the more sales that are completed, the more often the ledger is posted. The complexity of a bookkeeping system often depends on the size of the business and the number of transactions that are completed daily, weekly, and monthly. All sales and purchases made by your business need to be recorded in the ledger, and certain items need supporting documents. A bookkeeper who works for a small business often reports directly to the business owner. They often do everything from the daily transaction reporting right up to financial statement preparation at the end of every month. A bookkeeper does the billing for the company and often processes the payment receipts and issues outstanding account statements. To ensure that all of the transactions that appear on the bank statement are recorded, the bookkeeper reconciles the values on the bank statement to those recorded in the accounting system. | Organized financial records and properly balanced finances produced by the bookkeeper, coupled with smart financial strategy and accurate tax filing by the accountant, contribute directly to the long-term success of every business. Some business owners learn to manage their finances on their own, while others opt to hire a professional so that they can focus on the parts of their business that they really love. Whichever option you choose, investing—whether it be time or money—into your business financials will only help your business grow. The modern day bookkeeper is about:
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