Bookkeeping is the backbone of accounting and its origin dates to 2600 B. C., the Babylonian period. Bookkeeping is the recording of financial transactions and is part of the process of accounting in a business. Typically, a bookkeeper records the day to day financial transactions of a business in a general journal and records accounts payable and accounts receivable. The bookkeeper records purchases, sales, receipts and payments. The general journal is posted to the general ledger. Once the general ledger is correct, the accountant can create financial statements or other reports based on these records.

Bookkeeping helps track accounts receivables and payables, timely customer invoicing, posting payments and collections, monitoring bounced check payments, reconciling payables with bank accounts, reconciling and posting sales to general ledger, tracking and keeping tab on outdated receivables, reconcile bank and credit card statements, reconcile expenses with credit card accounts, checkbooks and bank accounts, and year-end financial statements.

Good bookkeeping helps your business to track the money from sales to collections as well as assists tax preparation with accurate information so that you can focus on building and growing your business.