What is Bookkeeping?
Bookkeeping is a bit like the beating heart of a business. It’s an essential function that keeps track of all the financial transactions that occur within a company. This could be anything from sales revenues coming in, to expenses going out for office supplies or employee salaries. The aim is to keep a meticulous record of these day-to-day transactions.
In more technical terms, bookkeeping involves recording, storing, and retrieving financial transactions for a company, nonprofit organization, individual, etc. It’s a vital step in the accounting process and forms the basis of solid financial management.
In a nutshell, bookkeeping is like the diary of a business, noting down every financial move it makes. This information is later used to create reports that can help business owners understand how their business is doing, plan for the future, and prepare for tax time. Good bookkeeping is vital for a business to succeed and grow.