Bookkeeping Services
Bookkeeping is the systematic process of recording, organizing, and maintaining financial transactions for a business. It involves keeping accurate and detailed records of all financial activities to ensure that a company's financial data is reliable and up-to-date. Here are key aspects and concepts related to bookkeeping. Bookkeepers record day-to-day financial transactions, including sales, purchases, receipts, and payments, in a chronological order known as the general ledger.Similar to accounting, bookkeeping follows the double-entry system, where each transaction affects at least two accounts. Every debit has an equal and opposite credit entry.Accounts represent specific financial categories such as assets, liabilities, equity, revenue, and expenses.
The chart of accounts is a listing of all these accounts used by a business.The ledger is a collection of all accounts and their balances. It provides a detailed record of financial transactions and allows for easy tracking of individual accounts.The trial balance is a summary of all the account balances at a specific point in time. It ensures that the total debits equal the total credits, which is a key step in the bookkeeping process.Bookkeepers prepare basic financial statements, including the Income Statement and Balance Sheet, by summarizing information from the general ledger.
Bookkeeping is often facilitated by accounting software tools, such as QuickBooks, Xero, and others, which streamline the process and reduce manual errors.Bookkeeping is often facilitated by accounting software tools, such as QuickBooks, Xero, and others, which streamline the process and reduce manual errors.