Bookkeeping: the process of recording daily transactions in a consistent way — a key component to building a financially successful business.

 

What a Bookkeeping Cooperative Can Do:

  • Recording financial transactions
  • Posting debits & credits
  • Producing invoices
  • Maintaining & balancing subsidiaries, ledgers, historical accounts
  • Completing payroll

 

Maintaining a general ledger is one of the main components of bookkeeping. The general ledger is a basic document where a bookkeeper records the amounts from sale and expense receipts. This is referred to as posting. The more sales that are completed, the more often the ledger is updated. A ledger can be created with specialized software, a computer spreadsheet, or simply a lined sheet of paper.

The complexity of a bookkeeping system often depends on the the size of the business and the number of transactions that are completed daily, weekly, and monthly. All sales and purchases made by your business need to be recorded in the ledger, and certain items need supporting documents. The IRS lays out which business transactions require supporting documents on their website.

To be successful in their work, bookkeepers need to be sticklers for accuracy, and knowledgeable about key financial topics. Usually, the bookkeeper’s work is overseen by either an accountant or the small business owner whose books they are doing. Bookkeepers are required to have between two and four years of experience or an associate’s degree.

Organized financial records and properly balanced finances produced by the bookkeeper, coupled with smart financial strategy and accurate tax filing by the accountant, contribute directly to the long-term success of every business.

Some business owners learn to manage their finances on their own, while others opt to hire a professional so that they can focus on the parts of their business that they really love. Whichever option you choose, investing—whether it be time or money—into your business financials will only help your business grow.