Bookkeeping involves the recording, on a day to day, of a company’s financial transactions. With proper bookkeeping, companies are ready to track all information on its books to form key operating, investing, and financing decisions. Bookkeepers are individuals who manage all financial data for companies. Without bookkeepers, companies wouldn't remember their current financial position, also because of the transactions that occur within the corporate. Accurate bookkeeping is additionally crucial to external users, which includes investors, financial institutions, or the government – people or organizations that need access to reliable information to make better investments or lending decisions. Simply put, the whole economy relies on accurate and reliable bookkeeping for both internal and external users. Proper bookkeeping gives companies a reliable measure of their performance. It also provides information on general strategic decisions and a benchmark for its revenue and income goals. In short, once a business is up and running, spending overtime and money on maintaining proper records is critical. Many small companies don’t hire full-time accountants to figure for them because of the cost. Instead, small companies generally hire a bookkeeper or outsource the work to a knowledgeable firm. One important thing to notice here is that a lot of people that shall start a replacement business sometimes overlook the importance of matters like keeping records of each penny spent. Essentially, bookkeeping means recording and tracking the numbers involved within the financial side of the business in an organized way. It is essential for businesses but is additionally useful for people and non-profit organizations. The person(s) liable for bookkeeping for business would record all transactions that are related, including but not limited to:

• Expense payments to suppliers

• Loan payments

• Customer payments for invoices

• Monitoring asset depreciation

• Generating financial reports

Bookkeeping and accounting are often heard getting used interchangeably, however, accounting is that the overall practice of managing finances of a business or individual, while bookkeeping refers more specifically to the tasks and practices involved in recording the financial activities.