top of page
  • Writer's pictureLoretta Griffin

What is bookkeeping?

What is bookkeeping, anyway? Many people think - oh, you do taxes? (Nope--that's an EA or CPA).

Or, even worse, you work at a library or place bets on horses? --Nope, nope, nope.

Bookkeeping is the data side of accounting. It is keeping track of all the income and expenses that flow in and out of a business, in something called the "ledger".

The ledger is just the story of what is happening in the business in the real world. And it's a story that really needs to be accurate, as the life of the business and the livelihood of the business owner depend upon it.

Financial reports from the ledger give the business owner, their advisers (banker, CPA and attorney) a snapshot of where the money is coming from, where it is going, how much is on hand, and what is profitable (or not).

There are great online accounting programs and associated apps that can handle this data so that data entry is mostly a thing of the past. The trouble is, having a tool is not the same thing as knowing how to use it. Just like you wouldn't fly an airplane or operate a sawmill without some serious training, so it should be with accounting.

In other words, to err is human; to really foul things up requires a computer. Put those pieces together wrong, and you will get the wrong picture--which leads you to steer your business in the wrong direction.

Sure, you can hire your best friend’s second cousin’s niece. But first make sure they know how to categorize transactions, will diligently double check each month to spot those keying errors, and can tailor your books to suit your business type.

A professionally-trained bookkeeper can save you more money than they cost. They help you avoid late fees, reduce unpaid invoices, and stop overpaying taxes. Most important, you have more time to grow your business. You learn where your biggest profit margins are and double-down on those activities. You plug those cash leaks fast.

For more information, email me as to set up a free discovery call!

14 views0 comments

Recent Posts

See All

4 signs that you're ready to get a bookkeeper

When is it a good time for a business owner to outsource bookkeeping? Here's a list of things to consider. 1. Are you no longer bootstrapping it? When you’ve moved to the point where your busine

Types of bookkeeping services

Every profession has its terminology. Here is a list of bookkeeping services that I offer with some extra description. Catch up: entering business transactions that are a month or more behind to your

Recording a PPP loan in your ledger

There are several phases to the PPP loan and at least 2 entries that need to be made in the accounting: when the loan is received, and when it is forgiven/paid back. So, without further ado, here is


bottom of page