What is bookkeeping & how does it work?

It involves recording transactions and storing financial documentation to manage the overall financial health of an organization. Most businesses use an electronic method for their bookkeeping, whether it’s a simple spreadsheet or more advanced, specialized software.

What is the difference between a bookkeeper and an accountant?

Bookkeepers are extremely involved in daily company operations. They need to be involved in every process where payments occur. Bookkeepers need a strong grasp of all financial details in the company so they know if there are any inconsistencies. An accountant needs strong and accurate bookkeeping to do their work. However, their work is different.

What is financial bookkeeping?

Financial bookkeeping is the record-keeping aspect of accounting. It includes recording all daily transactions. These are individual entries in journals or ledgers that summarize each business transaction. Accountants use these journals to prepare your financial statements.