From freelance entrepreneurs to large corporations– no matter the size of the business, bookkeeping is a critical part of running it. It offers immense benefits and advantages that streamline operations, drive growth and support decision-making. But what exactly is bookkeeping, why is it necessary, and how can it help your business?

To understand the importance of bookkeeping requires an understanding of the discipline itself and its many benefits. Bookkeeping is the practice of tracking financial transactions – income, expenditures, taxes, assets, liabilities, and other related activities for a particular entity such as a business or individual. Through diligent and accurate record keeping of financial activities, businesses can gain insight into spending habits, craft keen budget plans, utilize tax records and lawfully declare profits.

Timely completion allows greater focus on other areas of business surrounded by uncertainty and strategies for success. The core value behind bookkeeping lies in the ability to track, assess, analyze, project and control financial activity. Ultimately, bookkeeping helps businesses make informed decisions based on actual, up-to-date information as well as providing key economic perspectives.