Chapter 14
Bookkeeping
Bookkeeping means keeping daily records of business financial transactions. These records include a daily cash sheet, accounts receivable and accounts payable Bookkeeping should be done daily and these records are kept for three main reasons:
- To keep track of your business’ money, particularly if you are in a business where large amounts of cash are involved on a day-to-day basis
- To keep track of your business’ daily, weekly, and monthly financial performance, and to see whether this performance is meeting your expectations, projections, and goal.
- To provide your accountant, if you plan to use one, with the necessary information to quickly and accurately prepare your income tax returns and to produce financial statements as required under tax laws