What do bookkeeping services entail?
Bookkeeping is the recording of financial transactions on a daily basis, and is part of the process of accounting in business. Transactions include purchases, sales, receipts and payments by an individual person or an organization/corporation.
With proper bookkeeping, companies are able to track all information on its books to make key operating, investing and financing decisions.
Bookkeepers are individuals who manage all financial data for companies. Without bookkeepers, companies would not be aware of their current financial position, as well as the transactions that occur within the company.
Accurate bookkeeping is also crucial to external users, which includes investors, financial institutions or the government – people or organizations that need access to reliable information to make better investments or lending decisions.
Simply put, the entire economy relies on accurate and reliable bookkeeping for both internal and external users.
Duties
Bookkeeping, accounting, and auditing clerks typically do the following:
- Use bookkeeping software, spreadsheets, and databases
- Enter (post) financial transactions into the appropriate computer software
- Receive and record cash, checks, and vouchers
- Put costs (debits) and income (credits) into the software, assigning each to an appropriate account
- Produce reports, such as balance sheets, income statements, and totals by account
- Check for accuracy in figures, postings and reports
- Reconcile or note and report any differences they find in the records
The records that bookkeeping, accounting, and auditing clerks work with include expenditures (money spent), receipts (money that comes in), accounts payable (bills to be paid), accounts receivable (invoices, or what other people owe the organization), and profit and loss (a report that shows the organization’s financial health).
Learn more about small business bookkeeping in our blog.