What Is Bookkeeping?

Bookkeeping is invoicing your customers, paying your vendors, paying your employees, and doing banking activity.  A bookkeeper gets your invoices out on time, records and tracks your expenses accurately, pays your employees properly, records your banking transactions and reconciles your bank account(s) regularly.

 

Proper bookkeeping means ALL the transactions from your business activity are recorded in a system of record in a timely and accurate manner.

 

What Is Accounting?

Accounting is compiling the data from your bookkeeping efforts in a structured (according to Generally Accepted Accounting Principles) and meaningful way that produces reports that allow you, the business owner, to understand how your business is doing, and where your resources are being utilized and accumulated. Good accounting means you know what your bank account balances are, know exactly what your company is spending money on, how much you have invoiced customers and what the outstanding balances are, how much you owe your vendors and when, profitability of your services and/or products are.  It provides you with timely and relevant information to better operate your business, and convey that information to others interested in your business operations and results.

 

And with an excellent accounting system-of-record tool like Intuit's QuickBooks software, you can rest assured that you will recieve the most timely, accurate, and relevant information about your business.