WHAT IS BOOKKEEPING?
WHY IS BOOKKEEPING IMPORTANT?
DO YOU NEED A BOOKKEEPER?
BOOKKEEPING:
Bookkeeping is defined as "the activity or occupation of keeping records of the financial affairs of a business." With some background and some training, just about anyone can learn to do bookkeeping. The question is not really can you do it, but more of do you want to take time away from your business and do your own bookkeeping.
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Accurate bookkeeping can be very time consuming.
WHAT IS RECONCILIATION?
A large part of bookkeeping is performing reconciliations.
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A reconciliation of a bank account is matching all transactions on a company's books to the transactions on a company's bank statement and identifying and correcting (if necessary) the company's book records OR identifying mistakes a bank may have made in the company's bank account.
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An account reconciliation is identifying what items comprise a balance in a company's book accounts. For example, you may have an account called "Deposits" for things like rent or things you have purchased to be delivered later. The reconciliation will itemize the amounts of each deposit that comprise the account balance. When this is done, corrections can be made if items are misclassified.
