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The Corporate Finance Institute Accounting
What is Bookkeeping?
To learn more, please Bookkeepers are individuals that manage all the financial data for
check out our free online companies. Under the general notion that knowledge is power,
accounting courses bookkeepers to a certain degree have a high level of power within a
company given their access and knowledge of all its financials. With
View courses proper bookkeeping, companies are able to track all information
in the company’s books to help make key decision, which include
operating, investing, and financing matters. Without bookkeepers,
companies would have no clue about their current financial position
and any transactions that occur within the company. Just as much
as bookkeeping is important to the company’s internal users,
accurate bookkeeping is also crucial to external users: investors,
financial institutions, or the government who needs access to reliable
information to make better investment or lending decisions. Simply
put, our whole economy relies on accurate and reliable bookkeeping for
both internal and external users.
Many small companies don’t actually hire full-time accountants to work
for them because the costs are usually higher. Instead, small companies
generally hire a bookkeeper or outsource their bookkeeping duties
to a professional bookkeeping firm. An important thing to note here
is that many people who have ambitions on starting a new business
sometimes overlook the importance of trivial stuff such as records of
every penny spent. Running a business, however, is a marathon and not
a sprint and to help achieve longevity, bookkeeping is essential! Proper
bookkeeping and a proper financial trail give companies a reliable
measure of how well or how poor they are doing. It also provides
guidance on general strategic decisions and a benchmark for profit
goals. In short, bookkeeping, once a business is up and running, is
your best friend so spending the extra time and money on maintaining
proper records is critical.
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