Bookkeeping is one of the most essential tasks of any business. Without proper bookkeeping, your business could very quickly and easily crash into a wall. Small business owners can do their bookkeeping on their own, but many invest in a bookkeeping service that will save them not just precious time but the risk of making very costly financial mistakes.
Bookkeeping is the process of recording all the financial transactions and events that occur in your business. Purchases, sales, earnings, receipts, and payments are all meticulously recorded so that all the money that flows in and out of your business is accounted for. Bookkeepers organize and track receipts and checks, and make a note of purchases as soon as they are made. They record all the data chronologically into designated books, or computer bookkeeping software. This form of careful record-keeping may seem over the top, but it is critical to the health and success of a business. Bookkeeping is only the first instance in several directions of financial planning and organization.