From paying third-party vendors to replenishing inventory, businesses of all sizes are involved in many financial transactions on a daily basis. Keeping up with these exchanges is essential for staying on top of cash flow, tax obligations, and payroll. Bookkeeping helps companies identify, monitor, and fulfill critical fiscal duties. Here’s what you need to know about this important task, why businesses need it, and the benefits of outsourcing to a professional bookkeeper.
What Is It?
Bookkeeping is an accounting procedure that records all of a business’s financial transactions. These will typically include credit card transactions, receipts for computer equipment, travel expenses, and monthly commercial rent payments.
The two most common forms of bookkeeping are single-entry and double-entry systems. With the single format, transactions are recorded in a journal or online accounting system. This type of recording is typically used by smaller businesses with fewer transactions.
The double format uses a credit and debit entry system. Each transaction is recorded so that one account is credited and another is debited. A bookkeeper will subtract a company’s financial assets from its liabilities to determine which one to use. Once the calculation is made, the total amount of debits should equal the total amount of credits.
Why It’s Important for Businesses
Entrepreneurs are busy as they juggle myriad tasks each day. Unfortunately, keeping track of cash flow is often forgotten among the other many responsibilities. Bookkeeping fills in this important gap by identifying and organizing financial transactions so that you can focus on other areas of the operation. An advanced system can even improve productivity by organizing payments and invoices for better accuracy.
This service can also take care of critical business responsibilities such as tax filing and payroll processing. An accounting specialist can help you save money by securing tax deductions and avoiding costly penalties.
Why It’s Worth Outsourcing
Hiring a professional helps you devote time to other priorities such as strategic growth opportunities and marketing. It’s one less task to worry about on an already full plate of responsibilities.
Instead of spending funds to recruit, interview, and hire an in-house bookkeeper, outsourcing cuts down on costs. You can tailor your accounting preferences based on the company’s size and complexity. You’ll maximize what you’re spending without having to pay for more than you need.
Bookkeeping provides a litany of benefits to help keep your operation humming along. AVK Global Bookkeeping specializes in providing expert and affordable services. Serving Phoenix, Glendale, Chandler, Gilbert, Tempe, and Maricopa, AZ, the agency does it all, including daily and weekly bank reconciliations and accurate transaction classifications. Call (602) 935-5728 to learn more about how the firm can help your business. Visit the website for additional information.