Bookkeeping is the process of recording all financial transactions that you make for your business, and storing that information in a type of journal or 'ledger'. Now days instead of using a physical book to record transactions in, the majority of companies use Excel spreadsheets or accounting software like Quickbooks.
There are two types of transactions that bookkeeping focuses on recording:
Credits and Debits.
Credits are the cash transactions that come in to your bank account. They include money that you've earned from your company, refunds, dividends or any other type of cash flow that comes into your account. This credit transaction is commonly referred to as income.
Debits are the cash transactions that come out of your bank account. They include money that you spend on things for your business, such as supplies and materials, payroll, office rent, computer equipment, and other tools that you may need to help your business run. This debit transaction is commonly referred to as expenses.
Why does your business need to keep financial records?
There will be many financial tasks that your company will take care of eventually that will require an accurate set of bookkeeping of all your financial transactions. Tasks such as compiling financial statements, planning budgets, running payroll, making tax payments and reporting, applying for business loans and other tasks will require you to have a good bookkeeping system in place.
How M&M Bookkeeping can help
Recording all your transactions can be a daunting task, and can feel like it's draining the energy out of you. Rather than spending hours a week entering numbers into a spreadsheet or trying to learn how to use accounting software, we can manage all your record keeping for income and expenses.
This saves you time and headache, and allows you to focus on what you love most - growing your business.
We will take care of everything from setting up your accounting software, helping you get your business bank account linked, and making sure all your transactions are recorded and categorized correctly.
Get started today, and start breathing easier knowing your financial books are in professional, trusted hands.