Original Content: Business Upside
One does need to specialize in accounting to know about business bookkeeping. Knowledge about bookkeeping basics is a must for any business owner, big or small. This article will talk about everything that a businessman needs to know about bookkeeping.
Bookkeeping Definition
The process of maintaining the financial transactions of one’s firm into organized accounts on a day-to-day basis is known as bookkeeping. It depends on business to business when it comes to choosing the technique for bookkeeping. There is much importance of bookkeeping and one of them is that it allows creating financial reports that further helps to check how the person’s business is performing. It becomes easier to audit for tax if the books are maintained properly.
Who is a Bookkeeper?
People generally get confused between an accountant and a bookkeeper. But a bookkeeper is a professional who is responsible for maintaining and recording the financial transactions of a firm like payments, invoices, sales revenue, expense, and purchases. Below is a list of tasks performed by a bookkeeper.
Recording financial transactions
Bank feed management
Bank account reconciliation
Account receivables handling
Account payables handling
Helps with tax compliance
Formulates the financial statements
Some Human resources and payroll functions are taken by them
Make recommendations for process streamlining and technology
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