What is bookkeeping? Bookkeeping is the recording of transactions and events. It can be done manually or electronically. It is associated with the field of accountancy.
Why is bookkeeping needed? By law it is required that each business maintains bookkeeping records. Bookkeeping is also used as a means so business owners can have a clear picture on the productiveness of their business- whether there are operating at a gain or at a loss.
How should bookkeeping be done? Bookkeeping should be done by an accountant or bookkeeper professional who understands the whole bookkeeping process. The bookkeeper or accountant should be there to alleviate the business owner from focusing on trying to be a bookkeeper so that the business owner can apply his/her energy and operate his/her business to his/her full capability.
Bookkeeping steps:( 1) Analyze Transactions (2) Journalize (3) Post (4) Prepare Unadjusted Trail Balance (5) Adjust (6)Prepare Adjusted Trail Balance (7) Prepare Statements (8) Close (9) Prepare post-closing trail balance (10) Reverse (optional).
If you are in need of a bookkeeper then contact us at Horizon Tax and Business Solutions and we will be delighted to take care of your bookkeeping needs.
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