Bookkeeping, as the name suggests simply means to keep the books of businesses. In accounting terms, it means keeping, recording, and maintaining day-to-day activities related to the financial transactions of a business.
Bookkeeping is a direct record of a company’s sales, purchases, income, and expenses that take place daily.
This record is necessary for every organization, irrespective of its size. Without proper bookkeeping, it is difficult for a company to track its financial performance.
Bookkeeping helps stakeholders and business owners estimate their current staff requirements, growth perspectives, lending capacity, and ability to make informed investment decisions.
It is generally performed by individuals (bookkeepers) who manage records and keep track of all the vouchers coming in and out of the company.
Every business needs to stay up to date with its finances. Generally, small business owners have two options.
Either, to maintain all the transactions on their own, OR to hire the services of a bookkeeper.
As a company’s customer base, suppliers, and workforce start to grow, so does the difficulty of bookkeeping. In this scenario, it becomes impossible for a business owner to keep track of all transactions on their own.
Some of the activities involved in bookkeeping are to:
- Record each sale and purchase transaction
- Maintain and store every voucher in a general ledger
- Keep an eye on bills receivable and bills payable
- Post each transaction according to debit and credit principles of accounting
- Manage payrolls
- Generate invoices
That’s a lot, but thanks to the technology that brings us smart accounting software, maintaining bookkeeping becomes much more simple. One of the most trusted softwares is QuickBooks.
This software automatically posts entries in the respective ledgers once you enter debit and credit transactions.
QuickBooks is easy-to-use accounting software that saves time involved in manual data entry and helps in automating monotonous accounting tasks.
It also helps to invoice customers via its email invoicing system. It helps in reconciling debit and credit card transactions from banks and designating expenses to their respective groups.
With QuickBooks, businesses will get all the accounting reports such as trial balances, and general ledgers in one place.
It is the most recommended software for small business owners who want to save time and cost involved in bookkeeping at a competitive price.
Apart from the above, the software takes periodic backups. It also comes up with a mobile app, so owners can keep track of their books remotely. It comes with a 30 days trial period.
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