Book Keeping – Why it Matters?

Book Keeping – Why it Matters?

Posted on Mar. 04, 2024

Bookkeeping means orderly recording and organizing of a company`s financial transactions. It assures that the records of financial transactions are up-to-date, accurate, and comprehensive. It involves preparing source documents for transactions, operations, and other events of the business.

Below are few samples of financial transactions:

  1. Purchase on a product with cash
  2. Sale on merchandise on credit
  3. Customer payments on invoices
  4. Salaries and wages of Employees
  5. Buying equipment for the office
  6. Borrowing money from the bank
  7. Generating Financial Report

Oftentimes, Accounting and Bookkeeping are interchangeable. However, Bookkeeping is just a small segment of the whole Accounting System or the overall practice of managing the finances of a business or individual. Bookkeeping tasks and processes are more specific in terms of recording and financial activities.

Why It Matters?

If Bookkeeping is completed properly, this might be a reliable measure of the performance of the Business or Individual. This may also help in Business decisions easier and smoother.

Businesses can also track down if the business is still making a profit or growing and this will lead to making Business Evaluation.

We can comprehend the movement of money flows that are coming and where the cash is spent, or they call it “Cash Flows”.

Having an accurate business record done by a bookkeeper will keep the tax affair easy and that they can efficiently calculate the precise amount to be paid for the government. By doing so, you are complying with government regulation and you may be referred to as a “Good Tax Payer”. Furthermore, you do not need to worry about fines and litigations.

How does it work?

Most of the Bookkeepers are trained for their work, have knowledge of the fundamentals of bookkeeping, of accounting, and possess tax awareness to serve their clients to the best of their ability. They are also familiar with Bookkeeping software like QuickBooks Desktop/Online. It is their responsibility to make the book of the client accurate and deliver timely and properly.   

Do you want peace of mind regarding your day-to-day financial transaction? We are here to supply you a service of a Bookkeeper. We are here to serve you.