The Four Elements of Bookkeeping

elements of bookkeeping

Bookkeeping is essential to keeping your business finances organized and accounted for. A bookkeeper is responsible for keeping track of each and every financial transaction that takes place within your business, both ingoing and outgoing. This allows you to see exactly where your money is going and plan budgets accordingly. Here are the four elements of bookkeeping!

Accounts Receivables

The accounts receivable refers to the money that is coming into the business. Your bookkeeper should be sending some type of invoice to clients for all the services that you’ve performed for them. This invoice shows all the necessary costs that the client is required to pay to your business.

 

The bookkeeper keeps track of all incoming payments from clients, marking them down as deposits are made. Your bookkeeper also takes on the responsibility of following up with any clients that may be behind on payments.

Accounts Payable

Though businesses may not be too excited about accounts payable, it is still crucial to keep track of it. The accounts payable refers to the bills and expenses that your business has to pay to others.

 

A good bookkeeper will keep track of each and every outgoing payment your business needs to make. This helps you keep track of what you owe so you can determine the best system to make payments that maximizes your cash flow.

Bank Reconciliations

Your bookkeeper is responsible for regularly going through all of your bank and credit card transactions. They ensure that all your statements stay organized and sort them out so that they’re always easily accessible.

 

Bookkeepers also go through to make sure there are no duplicate transactions documented which could impact your business finances.

 

Once they’ve entered all your card transactions, they will go through to make sure that each account matches up with their bank statements and there’s no discrepancies.

Payroll

A good bookkeeper doesn’t only keep track of your accounts, but can also keep track of your payroll as well. Having someone operate your payroll saves you so much time, allowing you to focus on other important elements of business.

 

Your bookkeeper will keep track of your employee’s work hours, days off, commissions, etc. Once all of this is entered, the finished form will be sent to your management team for final approval and then payroll will be completed from there.

 

Your bookkeeper will keep track of this information and prepare tax documents for employees during tax season.

Contact PL Consulting Today for Your Bookkeeping Services!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, budgeting, and more.

 

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

 

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

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