What is Bookkeeping?

What is Bookkeeping

What is Bookkeeping?

Bookkeeping is the process of recording financial transactions of a business within the accounting software. It is further defined as the process of recording, reconciling, tracking and monitoring the business transactions in a reliable and accurate manner.

The most common tasks of a bookkeeper include;

  • Bank Reconciliations
  • Accounts Payable
  • Accounts Receivable
  • Payroll
  • Recording, filing and managing receipts
  • Reimbursement management

What is a bank reconciliation?

A bank reconciliation involves allocating transactions from the bank statements into the financial statements. As a result, this will build the Profit and Loss statement. This is where you will track your business income and expenses which provides insights into how much profit your business is making.

What Does a bookkeeper need to know?

Bookkeepers will have a basic understanding of employee
entitlements including how to account for leave. In addition to this, a good bookkeeper will know GST r