The Basics About Bookkeeping

Posted by admin on 2021

Is bookkeeping and accounting the same thing? The answer is no. Many things done in these roles are the same; however, bookkeeping is a subset of accounting, which refers to recording financial transactions daily.

Bookkeeping is mainly composed of the following tasks:

  • Recording financial transactions
  • Posting debits and credits
  • Producing invoices
  • Maintaining and balancing current accounts, historical accounts, and general ledgers
  • Completing payroll

The Main Component Of Bookkeeping

You might be wondering, what is a general ledger?

This is a document where bookkeepers keep their records, expenses, and receipts. Back in the old days, when technology was not as evolved as today, ledgers were created with pen and paper; today, they can be managed with special software and tailored to your business to meet specific needs.

Why Is Bookkeeping Important

If you’re recently starting your business, you probably have a million things to worry about. Catching up on your bookkeeping skills might seem like a task for later. Hiring a certified public accountant in L.A., such as Roberts Accounting, to manage all your bookkeeping needs is the best decision you can make.

The benefits of keeping your expenses documented and monitored are innumerable. Audits will become a lot easier with a bookkeeper that provides reports to give an accurate look into the company’s capital.

Which Transactions Should I Record?

The main goal of bookkeeping is recording all the company’s detailed financial transactions in a way that provides useful information without being overwhelming, including records of:

  • Sales
  • Purchases
  • Receipts
  • Payments
  • Accruals for payables and receivables

It is important to be aware that bookkeeping requires knowledge of debits, credits, and financial statements, which is why a certified public accountant in L.A. is what you need to have flawless results.

Should I Do My Bookkeeping

This can be a tricky decision to make, but we can help you answer it with these other questions

  • Do you have the expertise to do it?

Probably you took some courses back in college, or maybe you’re relying on just knowing the basics. Even with these, it is not enough knowledge to give you the expertise bookkeeping requires.

  • Do you have the time to do it?

Keep in mind that bookkeeping is a tedious and time-consuming task. If you’re a new business owner, you have a lot on your plate, and adding bookkeeping to the mix might turn out to be overwhelming.

Outsource? Of Course!

Now that you’ve answered both questions, you’re probably wondering, “Are there any accounting companies near me?” The answer is yes! Roberts Accounting is available to help with the accounting needs of individuals and companies all over L.A.

We are ready to take that weight off your shoulders because we know that your time is valuable. Leave all the bookkeeping and payroll tasks to us, the greatest accounting company around.

Is all your bookkeeping information on paper? No problem for us! We’ll help you switch to a digital version, keeping all your information safe and private while saving your company ten man-hours per week. Trust Robert’s Accounting to guide you through the right path.

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