Everything You Need to Know About Bookkeeping

Everything You Need to Know About Bookkeeping

Bookkeeping may seem like an overwhelming concept, but it essentially refers to keeping records of financial documents. Such documents may include (but are not limited to) income tax records, payroll records, financial statements, and any pertinent ledgers or receipts. Of course, this in itself may seem a bit nerve-wracking – this is why most businesses choose to hire an outside bookkeeper to keep track of important documents for them. There are many reasons to hire a bookkeeper, including the time you will inevitably save when filing taxes, the potential deductions that you may have otherwise missed, and the avoidance of an audit. In the unfortunate circumstance that you are audited, bookkeeping year-round will save you immense amounts of time. If your books are well-organized, you will be able to return to ‘business as usual’ much sooner than you would otherwise. We at Accountax are available for any and all of your personal and business-related bookkeeping needs. Our Lake Worth bookkeeping team is highly experienced and dedicated to helping you keep your important documents in order, so that tax time is nothing short of a breeze.

What is Bookkeeping?

While most companies (small or large) benefit from hiring on a professional bookkeeper, bookkeeping is also beneficial to individuals and non-profit organizations. Bookkeeping involves the collection and storage of important financial documents, ranging from receipts and invoices to payroll and any pertinent government reports. Depending on the size of the concerned business, bookkeeping software may be utilized. However, while software may be beneficial for smaller businesses, it may not provide the services that medium-sized or larger businesses need. That’s where our Lake Worth bookkeeping services come in. Bookkeeping and accounting go hand-in-hand – however, there is a major difference between the two. While accounting concerns analyzing, summarizing, and reporting financial data, bookkeeping more specifically concerns the recording of financial transactions. In other words, accountants financially advise their clients, while bookkeepers quite literally keep the books. Fortunately, our Lake Worth bookkeeping firm also handles accounting, so all of your financial needs can be covered at once.

What Makes a Good Bookkeeper?

A good bookkeeper will process and record financial transactions on a daily basis. He or she will pay extremely close attention to detail, and will focus on one or several accounts (depending on what the business calls for). For example, it may be necessary to record transactions made through payroll and accounts payable/receivable. Because the job may call for a wide range of duties, multitasking is essential. Bookkeepers themselves may utilize specialized software, as well as databases and spreadsheets. Successful bookkeepers must have exceptional organizational skills, seeing as more information will be added to the books on a day-to-day basis. Bookkeepers must be extremely efficient, accurate, and educated regarding all of the ins and outs of finance; they must understand the processes involved in accounts payable and receivable procedures, as well as charting all additional accounts.

We at Accountax have years of professional experience in the field of bookkeeping, and we have become a financial pillar of the Lake Worth community because of our dedication to a job well done. If you own a small, medium-sized, or large business, or if you are looking for personal bookkeeping services, we are available to help. Please feel free to give us a call with any and all questions you may have. We look forward to hearing from you soon!