What is accounting and bookkeeping?
Accounting and bookkeeping are essential components of running a successful business. Recording daily transactions accurately and timely is the foundation of an effective accounting system. This involves maintaining ledgers, invoices and tracking expenses to ensure all financial data is organized and easily accessible.
Furthermore, reconciling bank statements helps identify any discrepancies and ensures the accuracy of financial records. However, accounting is a broader process that involves interpreting the information gathered and presenting it in the form of financial statements such as balance sheets, income statements, and cash flow statements.
These statements provide valuable insights into the financial health and performance of the business. Additionally, accounting plays a crucial role in assisting in strategic planning, budgeting, and forecasting, helping businesses make informed decisions to achieve their financial goals.