You probably have heard that bookkeeping is essential for any business. But what is bookkeeping, exactly? If you don’t know the answer, don’t worry: In today’s blog post, we’ll walk you through what bookkeeping is, why it’s important, and some of the basics you need to know.
What Is Bookkeeping?
At its core, bookkeeping is just the process of recording and organizing financial transactions.
This includes everything from recording invoices and payments from customers to tracking salaries and expenses paid to employees.
And while this concept is really easy to understand, no business can function without bookkeeping. Let’s see why.
Why Is Bookkeeping Important?
Bookkeeping helps you keep track of how money moves in and out of your business.
Good bookkeeping is essential for making good business decisions. By having a clear and accurate understanding of your business’s financial situation, you can make informed decisions about everything from hiring new employees to investing in new equipment.
In terms of the nuts and bolts of bookkeeping, here are a few key concepts you’ll want to know:
- Accounts payable: This is money your business owes to suppliers, vendors, or other parties.
- Accounts receivable: This is money that is owed to your business by customers or clients.
- General ledger: This is the record of all financial transactions within a business.
- Reconciliation: This is the process of verifying that your records match those of your bank or other financial institutions.
While bookkeeping is generally pretty straightforward, it can get more complex depending on the size of the business and the volume of transactions.
For this reason, many businesses choose to hire bookkeepers or accountants to handle their finances.
If you need help with your bookkeeping, La Senda Enterprises is here to help. Our team of bookkeeping experts stand ready to offer the solutions you need.
La Senda Enterprises: Bookkeeping and More
From income tax preparation to bookkeeping, at La Senda enterprises we offer a full range of professional services designed to make your life easier.
We are located in Rancho Cucamonga, California, and serve clients all over the Golden State and beyond. Get in touch today by email at info@lasendaenterpriseinc.com or by phone at 909-466-5522.