12/27/2019
The reason why you need a bookkeeper is either because you lack the time or knowledge to do it yourself. Basically, a bookkeeper keeps tabs on what comes in and what goes out for you to properly assess the level of business activity.
First, the bookkeeper aligns assets, liabilities, equity, revenue, and the expenses that your business incurs. Some of these are evidenced by receipts while others are recorded in an inventory.
Assets are categorized as your resources in achieving your business goals. This includes the cash on hand to spend on other items.
Next are liabilities that you incur after credits and your other payables. These include payroll liabilities and other credits you acquired to purchase your assets.
Another entry is called equity. It is the ownership interest which is increased by your revenue and the capital that goes into your business. After the assets and liabilities are recorded, the equity would be adjusted by the bookkeeper accordingly.
Revenue is the amount you earn from providing a product or service. It indicates the sales number for a particular period.
On the other hand, expenses are the costs incurred in attaining your revenue. A few examples are insurance, rent, and supplies expense.
