According to Investopedia, “Accounting is the process of recording financial transactions pertaining to a business or other large organization. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows.” ….. “A bookkeeper can handle basic accounting needs, but a Certified Public Accountant (CPA) should be utilized for larger or more advanced accounting tasks.”

Source: https://www.investopedia.com/terms/a/accounting.asp

Business Jargons said, “Bookkeeping can be defined as the system of keeping records and classifying all the financial transactions on a day-to-day basis concerning the business operations, in a sequential manner.

The term “transaction” refers to the business activity, in which the exchange of money or money’s worth for goods or services is involved.

It is the initial step to the accounting process, which supplies the preliminary information required to prepare and maintain accounts. Hence, the accounting is based on the proper system of bookkeeping. It involves:

1. Gathering basic financial data.
2. Identifying the transactions and events with the financial aspect, i.e. only monetary transactions are to be entered in the books of accounts.
3. Measuring the transactions in monetary terms.
4. Keeping a record of the financial effect of the transactions, in the order in which they arise.
5. Classifying the effect of transactions
6. Preparing statement, i.e. trial balance.” 

Source: https://businessjargons.com/bookkeeping.html

The Corporate Financial Institute stated, “Bookkeepers are individuals who manage all financial data for companies. Without bookkeepers, companies would not be aware of their current financial position, as well as the transactions that occur within the company.” 

Source: https://corporatefinanceinstitute.com/resources/accounting/bookkeeping-definition/

Beyond Financial Compliance, being audit-ready, and having all proper documentation to back up your financial standing at all times, a bookkeeper helps small businesses stay organized, helps them breathe easier, and is a crucial contributor to the growth of small businesses. (https://www.taxpayeradvocate.irs.gov/news/tax-tips/tas-tax-tip-small-business-filing-and-recordkeeping-requirements/2025/04/)

Bookkeepers help build out and keep up on the categorization and validation of all business transactions. They notify you if information is missing or fix any categorization mistakes. They identify new categories, keep your financial books clean and close books, and submit reporting in the cycle that you have scheduled with them. This saves small business owners time and gives them peace of mind. Accounting is a complex skill that can have a learning curve for those who don’t have a professional background in accounting. It’s often the first thing that small businesses outsource due to its complexity and importance. 

Bookkeepers.com outlines, “Bookkeeping is important for these reasons:

1. It’s required by the government ― The government, specifically the IRS, requires businesses to keep track of their financial records. Bookkeeping is the answer to this need.
2. It improves cash flow ― The financial statements the bookkeeper produces help the business manage and improve their cash flow. They can also strategically plan based on financial data and make informed decisions that’ll benefit the business.
3. It provides the data that investors look for ― Investors want to know how a business is faring to determine their investment’s value. When the business is able to project how much money enters and leaves at a given time, it can increase and maintain its pool of investors.
4. Makes tax filing easier ― Having organized and accurate books can cut back the time and effort your client spends on tax filing. The accountant can focus on finding opportunities for tax deductions, which can save both money and time.
5. It helps the auditing process go smoothly ― At some point, businesses go through internal or external auditing. If they practice good bookkeeping, their financial information will be readily available for checking and they can avoid penalties.
6. It gives the business owner peace of mind ― When the finances are well-taken care of, business owners can focus on other aspects of their work that’ll allow them to grow. Plus, they no longer need to be anxious when auditing season comes.” 

Source: https://bookkeepers.com/what-is-bookkeeping/

General Bookkeeping Includes: 

• Data entry
• Computation
• Maintaining accurate financial records
• Generating basic financial reports
• Communicating financial issues
• Reconciling transactions
• Basic budget reporting

Additional Bookkeeping Tasks (beyond General Bookkeeping): 

• Paying suppliers, vendors, customers, and loans
• Employee payroll
• Finding financial anomalies
• Identifying areas for improvement
• Custom financial reporting
• Detailed budget reporting
• Budget creation assistance
• Overseeing inventory

To read more, QuickBooks has a great article here: https://quickbooks.intuit.com/accounting/what-is-bookkeeping/

In conclusion, bookkeeping is an essential foundation for business success. It can get complicated and time-consuming, stealing the joy of small business owners. Hiring a professional bookkeeper to oversee this important responsibility can give small business owners the advantage of an employee without the overall cost. 

Redeemed Bookkeeping has general bookkeeping monthly subscription plans starting as low as $2,000 per month with a 12-month subscription. This is a fraction of the cost of hiring a part-time employee and much more time effective (no training, ramp up, management, time off, turnover, etc.). 

We are a small business, too. We know the struggles firsthand and are here to help you rest peacefully after reviewing your finances. Our partners appreciate the timely and thorough communication, flexibility, customization of services, tailored costs for their budgets, and having a strong financial partner who has their back. 

Reach out to us today to learn more about how we can help redeem your business finances. 

“It is amazing how much can be accomplished if no one cares who gets the credit.”

– John Wooden

“What you’re going to leave this earth is the influence on others.”

– Joe Gibbs