Basics of Bookkeeping for Your Business

Bookkeeping is crucial to any business. It is how daily financial transactions are recorded and prepares companies for filing taxes and for producing financial statements.

Businesses of any size need to keep accounts organized. Bookkeeping is the process of recording and classifying all financial transactions of a business. Not only is this helpful for business owners to understand their cash flow and expenses, it is also necessary for external sources like lenders. Bookkeeping is also crucial for tax preparation. If you are a small business or a start-up, you might not have an employee who can be devoted to bookkeeping tasks. At Thom Bookkeeping, we provide bookkeeping services so you don’t have to do them on your own. Focus on the day-to-day operations of your business while we take care of the books. Read on to learn about the basics of bookkeeping

What Is Bookkeeping and Why Does Your Business Need a Bookkeeper?

Bookkeeping is a task that needs to be completed on a daily basis. It is a process of keeping the general ledger of accounts organized by recording the company’s financial transactions and posting the debits and credits. In addition, bookkeeping involves completing payroll, general invoicing, and providing financial reports. The bookkeeper makes sure that the general ledger is balanced. It is important to have strong bookkeeping skills in order to keep everything organized. When it comes time to do taxes, it is a must that you have kept your accounts in order all year. For a start-up, bookkeeping can be tricky as there are so many new expenses associated with starting a business.

As an owner, reviewing the books is a good way to keep track of expenses and analyze the general cash flow of your business. In addition, those outside of your business such as lenders or investors will need access to your books. The books will help them better understand your business and decide if they want to provide you with a loan or invest in your company.

At Thom Bookkeeping, we provide bookkeeping services so that you don’t have to worry about recording every transaction. We use QuickBooks to help keep everything organized. Not only do we keep the accounts organized, but we can also provide you advice about your expenses and how to reduce your tax liability. Focus on day-to-day operations, growing your business, and marketing efforts. Leave the bookkeeping to us! We can take this necessary task off of your plate to reduce stress and allow you to be more efficient.

How Is Bookkeeping Different from Accounting?

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Bookkeeping and accounting are similar but have a couple key differences. Bookkeeping is more about the day-to-day transactions and keeping the expenses and sales organized. It also can involve tasks like completing payroll, generating invoices, and providing financial reports. Accounting on the other hand, goes beyond the day-to-day transactions and uses the information from the books to prepare tax returns as well as provide financial analysis. Accounting also involves preparing the end of year financial statements. In addition, accounting tends to be more analytical while bookkeeping is more about recording information without analysis. Accountants will also make adjusting entries for any expenses that were not recorded during the bookkeeping process. They will also provide business owners with financial forecasts.

What Can I Expect?

At Thom Bookkeeping you can expect us to keep your accounts organized. We will record all financial transactions and post debits and credits in real-time. We also do bank reconciliations, invoicing, and bill pay. At the beginning of each month, we gather financial documents from you to help with bookkeeping and to create accurate financial statements. We stay organized through our use of software that automatically imports and stores all of your financial documents such as bills, receipts, and invoices. The software allows us to easily sort and organize these documents and then store them forever.

Once the books are completed at the end of the month, we send business owners financial statements. We can customize these reports so that you see exactly what information you need to know about your business. In addition to bookkeeping, we provide extra add on services to help save you even more time and resources. Here are the add on services we provide:

  • Payroll – paying employees and filing tax forms
  • Tax planning – help reduce tax liability
  • Accounts payable – receive invoices and make payment
  • Accounts receivable – invoice clients and record payments
  • Budgeting – create annual budgets
  • Cash flow projections – weekly cash flow forecasting reports
  • Local taxes – handle payment and tax forms
  • LLC setup – register for a new EIN and complete the steps for filing
  • QuickBooks accounting file reviews – identify issues within your accounting file
  • Weekly books – transactions are downloaded and accounts are reconciled on a weekly basis

By outsourcing bookkeeping and some of these other services, you will save both time and money. All of these tasks take up a lot of time and resources. Focus on outsourcing these tasks to us instead of trying to figure out a way to do them internally.

You Need Outsourced Bookkeeping

Every business big or small needs a bookkeeper. While bookkeeping skills can be conducted internally, getting them outsourced is a great way to save time, money, and resources. At Thom Bookkeeping we provide bookkeeping to all sorts of businesses. Whether you are a start-up or someone who has been in business for years, we can help. We know the ins and outs of bookkeeping and are here to help keep your accounts organized. Through our software, the process is very simple and accurate. We simply scan in your important financial documents and then organize the information within the software. No longer worry about having to save the hard copies of invoices or receipts. The software will keep these documents forever so that you can always refer back to them.

In addition to keeping the books, we have extra services ranging from payroll to budgeting, and more! We are equipped for helping your business across the board. For more information about the services we provide, contact Thom Bookkeeping today.

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