Bookkeeping Definition

Bookkeeping is the foundation of accounting and helps businesses track income, expenses, and overall financial health. This is done through recording, organizing, and maintaining a company’s financial transactions. The key aspects of bookkeeping include:

• Recording transactions: Logging all sales, purchases, receipts, and payments.

• Categorizing expenses: Sorting costs into categories like rent, utilities, payroll, and supplies.

• Reconciling accounts: Matching bank statements with internal records to ensure accuracy.

• Managing invoices and receipts: Keeping track of money owed and received.

• Preparing financial reports: Summarizing data into balance sheets, income statements, and cash flow reports.

Some businesses use spreadsheets or accounting software like QuickBooks, Xero, or Wave. I use Quickbooks Online as this allows you to see your companies books in real time.

The following is a terrific article that explains what bookkeeping is and why it is so important to your company.

https://www.snhu.edu/about-us/newsroom/business/what-is-bookkeeping