Bookkeeping is essentially a very broad word that means “the tracking of everything that happens in your financial books.”
Bookkeeping started when monks kept records in books a long time ago. Every time money came in, they entered the income in one account book, and in another account book, they wrote from which account it came out of.
Hence, the name “Book keeping”.
Nowadays we don’t have to write it down in books, we can just show in our bookkeeping software like QuickBooks, that money came in or went out from a bank account, and what it was used for. That is why double-entry bookkeeping is called that – each transaction had to go into two books.
The main purpose is to track all expenses and income and every financial transaction. Then, at the end of each year, you have it all organized for your tax reporting.
These days Bookkeeping also includes other entries, depending on the level of service desired.
You can enroll in a payroll service; enroll in AP service where your Bookkeeper tracks or even pays the company bills; the Bookkeeper can send out invoices to your clients; help with tax compliance, such as 1099s, local business taxes, and sales tax.
Pretty much anything that you would do in your company that has to do with financial matters for your company can come under bookkeeping services.
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Maya Weinreb | Founder & CEO
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Frequently Asked Questions
Where did bookkeeping come from?
Bookkeeping has a long history dating back to early record-keeping practices where transactions were written into account books. The term “bookkeeping” comes from the practice of keeping written records of financial activity.
What is double-entry bookkeeping?
Double-entry bookkeeping is a system where every financial transaction is recorded in two places to show where money came from and where it went. Modern bookkeeping software, such as accounting platforms, uses this same principle electronically.
What is the main purpose of bookkeeping?
The main purpose of bookkeeping is to accurately track business income, expenses, and financial transactions. Organized records help businesses understand their finances and prepare accurate tax filings.
What services can a bookkeeper provide besides tracking transactions?
Modern bookkeeping services can include payroll processing, accounts payable management, invoice creation, financial reporting, tax compliance support, 1099 preparation, sales tax tracking, and other financial tasks that help businesses operate efficiently.
Why is accurate bookkeeping important at tax time?
Accurate bookkeeping keeps financial information organized throughout the year, making tax preparation easier and reducing the risk of missing deductions, reporting errors, or compliance problems.
Can bookkeeping services help with more than just recording expenses?
Yes. Today’s bookkeeping services often act as an outsourced financial department, helping business owners manage money coming in and going out, improve organization, and make better financial decisions.
Need Professional Bookkeeping Support?
If you’re looking for reliable bookkeeping help, Solvency Now provides professional services for businesses across the United States.
Or contact our team to learn how we can help keep your books accurate and up to date.