Bookkeeping is the process in which a business’s financial transactions are recorded and organized. A bookkeeper is the person who keeps all of this information updated and easily accessible for the business owner. In order for businesses to track their progress and conclude if they are profitable, they will want to keep strong records. By staying on top of your bookkeeping, you will be able to identify financial issues in their early stages, allowing you the chance to address and adjust them before they become serious. On the flipside, bookkeeping will also help you to track your successes, which can lead to growth in your business, by allowing you the opportunity to see what is working for you. All of this is made simple whenever you have clear and updated financial reports that are easy for you to track.
The tasks of a bookkeeper include but are not limited to, recording all financial transactions, sending out invoices, making scheduled payments, managing accounts, and preparing financial statements. Bookkeeping and accounting are similar processes, with bookkeeping focusing more on collecting and recording information and accounting focusing more on analyzing the information that is collected.
What Are Accounts?
Whenever a bookkeeper is talking about accounts, this does not refer to an individual bank account. Accounts in bookkeeping are actually referring to all financial transactions that fit into the same category, such as with expenses, sales, payroll, and more. These accounts will be kept separate and then, most often, categorized into one of the following types of accounts:
Assets: This is the cash, resources, and products owned by a business. This includes the money in bank accounts, the equipment a business uses, or the inventory of products they sell.
Liabilities: These are obligatory payments and debts that a business owes. This will include loans the business has taken out.
Revenues or Income: This is the money that the business earns, through the services they provide or goods that they sell
Expenses: This is the category for all cash that flows out of the business in order to pay for an item or service, this includes payroll costs, utilities, rent, and more.
Equity: This is the value of the business remaining after liabilities are taken away from assets. The equity of a business represents the owner’s held interest in the business, including stocks.
We offer our affordable bookkeeping services to businesses in the Dallas, TX area throughout the state of Texas. If you are a business owner looking to get organized and free up your schedule, contact King Financial Services today. Our team of financial professionals can answer any questions you may have and help you set up a bookkeeping strategy that fits your needs and budget.
Affordable Bookkeeping in Dallas TX
Sandra King is an enrolled agent, empowered by The United States Treasury to prepare your personal or business tax filing. While her services are offered nationwide, Sandra King locally serves the greater Dallas-Fort Worth area, including but not limited to Arlington, Bedford, Colleyville, Euless, Fort Worth, Grand Prairie, Hurst, Mansfield, North Richland Hills, and Richland Hills.