Bookkeeping and accounting
Bookkeeping and accounting are two important functions that are essential for managing the financial aspects of a business. Bookkeeping is the process of recording financial transactions such as sales, purchases, receipts, and payments. It involves creating financial records, reconciling accounts, and producing financial statements such as balance sheets, income statements, and cash flow statements.
Bookkeeping is a fundamental part of accounting and provides the necessary data for accounting analysis. Accounting, on the other hand, involves analysing, interpreting, and presenting financial information to make informed business decisions. It includes using the data generated by bookkeeping to create financial reports, identifying financial trends, forecasting future cash flows, and making financial projections.
Accounting also includes tax planning and compliance with accounting standards and regulations. Bookkeeping and accounting are both critical functions for your business. Bookkeeping provides the necessary financial records, while accounting helps you to make informed decisions, based on financial data. By properly managing these functions, you can ensure the financial health and success of your business.