Bookkeeping, regularly referred to as “keeping the books”, is the process of keeping full, accurate, up-to-date business records.

It is an essential function within any business type. Proper bookkeeping can help businesses effectively manage cash flow and stay abreast of profits and losses. It will also help the business to develop plans for the future based on financial trends. Furthermore, accurate bookkeeping is required by the South African Receiver of Revenue (SARS).

Though necessary and beneficial to business owners, the task of bookkeeping can be very time consuming. Not everyone has the skill or patience and success in this area of this business can be greatly attributed to outsourcing the task to a professional.

Accuracy is of the utmost importance and trying to keep the books in a rushed manner a very bad idea. Business owners are often lacking in time; so hiring a bookkeeper is one option; but not as cost effective as outsourcing the service to keep company records well maintained.

Your bookkeeping firm will give you month to month financial statements which will enable you to monitor the overall performance of your business.

With an effective bookkeeping system in place, which effectively keeps records of all your financial transactions, your business should be able to handle its cash-flow and keep on top of profits and losses made. Bookkeeping services include everything from processing bank reconciliations, debtor and creditor invoicing, petty cash, journal’s, debtors statements, creditor reconciliations, payroll and tax related issues.

Bookkeeping involves making a record of the monies received by a business as well as the monies paid out. It encompasses money a company owes to vendors, employees, tax agencies, contractors and any other individual or entity. Likewise, accurate records of amounts owed to a company by outside individuals and organizations are also recorded in a company's books.

With no exceptions, every monetary amount that is paid or received must be recorded. Additionally, accuracy is of the utmost importance, making keeping the books in a rushed manner a very bad idea. As business owners are often lacking in time, many choose to hire bookkeepers to keep company records well maintained.

Of the many reasons for keeping accurate records, business and income taxes are among the most important. The South African Revenue Service (SARS) requires business owners to keep financial records that are complete and up-to-date. State and city tax agencies may require businesses to maintain accurate records as well. In fact, a business owner who fails to observe acceptable bookkeeping practices may be liable for significant monetary fines or other penalties.

A company's books are used to determine details on pay-roll taxes, company taxes and VAT; and thus preparing and submitting these returns. If a tax investigation or query is lodged, business owners are required to present accurate records for the tax agency's inspection. Failure to do so could lead to hefty fines, penalties, or in severe cases, imprisonment.

Although hiring bookkeeping professionals may be a good idea for many companies, not all business owners can afford to do so. This is particularity true of smaller, home-based, or start-up businesses. Fortunately, there are many computer bookkeeping programs designed to make the task of keeping the books manageable and less time consuming.

Many bookkeepingprograms handle all of the calculations for the user, taking the worry out of keeping accurate figures. Available even to those on tight budgets, bookkeeping programs make record keeping a piece of cake.

Before spending money on expensive software, speak to us and find out what we can do for you! The personal touch and interactive relationship for such an important part of your business is extremely valuable. The advice of your bookkeeping professional is something you cannot do without and software programs do not offer the same.