What is Bookkeeping?

Bookkeeping is the first step of the accounting process and falls under the general “accounting” umbrella. It’s where every financial transaction is recorded and organized so you can track your company’s incoming cash and outgoing expenses. Every bill, receipt, and sale is logged and every penny accounted for.

Why do i need it?

You started your because you love building houses, washing dogs, or making art. You don’t want to spend all your time record keeping; however, accurate financial records are critical for every business.

If your day-to-day finances are well-organized, you can easily see where your company is succeeding or where you need to improve. You can see if customers owe you money so you can follow-up and get paid faster. You can see if you can afford to upgrade equipment or if you’re spending too much on supplies. If you have multiple revenue streams, you can also see exactly how each product or service is doing individually.

When you decide to expand your business and hire employees, the knowledge of a bookkeeper can save you the time and headaches of organizing everything involved with payroll. W4s, timecards, direct deposits, W2s... it all adds up. A bookkeeper can take that headache out of your hands and ensure your employees get paid accurately and on time.

Good bookkeeping is also essential when it comes to tax preparation. Excise taxes must be filed throughout the year (whether you sell taxable items or not) and payroll taxes to the state and federal government must be paid if you have employees. Your bookkeeper will keep track of those conflicting deadlines and file taxes for you because they already have all the information required ready to go.

Federal income taxes will be faster and easier because your bookkeeper will have all of your numbers ready to hand off to your tax preparer. All of your expenses will be neatly categorized allowing you to maximize deductions with little extra effort. This saves you time, stress, and money come tax season. Who doesn’t want more money and time while also having less stress?

Because bookkeeping is about verifying information, finding and correcting errors happens as quickly as possible so you always have the most up-to-date view of your company’s current financial standing.

This means when you use a bookkeeper, you can rest assured knowing the details are being handled behind the scenes allowing you to spend time doing what you love.

WHAT’s NEXT?

Now that you know what bookkeeping is and why you need it, what’s next? I offer free consultations to everyone considering using my services so we can arrange all the details needed for me to step in and become your bookkeeper. Then you can get to get back to the fun parts of owning a business and leave the rest to me.

Use the contact form in the menu when you’re ready to see how we can grow your business together!