What is Bookkeeping?

Bookkeeping is the process of tracking and measuring all financial transactions your company is involved in. Requiring either an associate’s degree or several years of work experience, this job involves:

  • Recording credits and debits for your company

  • Creating invoices and identifying whether they’ve been paid

  • Completing your payroll records

  • Maintaining ledgers, subsidiaries, and historic accounts, and making sure they’ve been balanced

Bookkeeping is a highly objective process, focused on gathering as much financial information as possible, making sure it is accurate, and organizing it. Bookkeepers generally do not interpret financial data for you or make plans to improve your financial prospects. However, by organizing data effectively, a good bookkeeper can make data easier to interpret down the line, including during the accounting phase.