Bookkeeping is the process of gathering, filing and organizing every bit of financial data related to the business. It is crucial for every business as no business can operate without business transactions. Bookkeeping helps collect and record these transactions, further assisting in forecasting business financials by compiling data.

Small business bookkeeping services are in demand for a reason. Bookkeeping for small businesses is no different from other businesses of different sizes. Bookkeeping must be conducted as and when a business transaction takes place. Many small businesses make mistakes, such as doing bookkeeping tasks in bulk during tax season, which only increases the chances of errors. Also, we do see some business owners tending to bookkeeping tasks on their own while they do not have any practical bookkeeping experience.

We have explained in many of our blogs about essential steps required for the bookkeeping process so that you can take reference from those blogs. However, bookkeeping is not something you can neglect. It might become overwhelming for you to take care of it while ensuring all other business processes are functioning efficiently. That is why we recommend hiring online bookkeeping services for small businesses.

Bookkeeping and accounting are often confused with each other. First, one must understand that bookkeeping is a part of accounting, and accounting is broader. Bookkeeping is concerned with recording day-to-day transactions effectively and adequately according to accounting rules.

The bookkeeping process includes tasks like maintenance of payroll transactions, record keeping of bills receivables & bills payable, management of petty cash book, preparing bank reconciliation statements, and even preparing financial statements. However, the accounting process includes preparing financial reports, budgets, tax returns reporting & filing, and analyzing business financial performance.