Importance of Bookkeeping

Bookkeeping is the collection of financial data—the day-to-day recordkeeping of all of your company’s financial transactions.

Your books hold the data you need to make all of your strategic financial decisions. If you don’t have a good grasp of how money goes in and out of your books, and at what amounts, you can’t make informed decisions about your company’s finances and you can’t plan ahead.

– Brenda Sherrodd, Avitus Group Director of Accounting Services

Importance of Accounting

Accounting is the creation of financial strategy based on the data collected in day-to-day bookkeeping.

What Accountants Do:

-Audit your books to ensure accuracy

-Interpret the numbers in your books

-Create strategy based on those numbers

Through audits and reports, your accountants provide a picture of your company’s finances:

-Trends

-Forecasts

-Cash flow

-Growth potential

How can you decide to make a big financial investment such as an onsite data management system (i.e., servers, processors and the people to run it) if you don’t know whether you have the money? You can’t.

– Brenda Sherrodd, Avitus Group Director of Accounting Services

importance of bookkeeping and accounting infographic