What is bookkeeping?

Bookkeeping is the process of recording and organising the financial transactions made within your business. A bookkeeper is responsible for that process. Bookkeeping is the main way business owners will know if their business is profitable. By keeping an eye on your numbers, you can identify any financial challenges early on and address them before they become problems.

Bookkeeping also helps you identify areas of profit which you might not have noticed without clear financial reports.

In general, a bookkeeper records transactions, monitors invoices and can also makes payments, manage accounts and prepares financial statements. Bookkeeping and accounting are similar, but bookkeeping is the basis for the accounting process.