Bookkeeping is the process of recording, regularly, a company's financial transactions to create a record that can be summarized for various uses. It is broad-ranging from check registers used to record checks and deposits to ledgers and journals used by large corporations. Bookkeeping is an essential function in your business for both legal and financial management purposes. By keeping accurate records, your business can get a snapshot of its health in the form of financial statements such as income statements, balance sheets, cash flow statements, and more. Without bookkeeping, companies would not be aware of their current financial position and the transactions that occur within the company.

The foundation of solid business bookkeeping is adequate and accurate expense tracking. It's a crucial step that allows you to monitor the growth of your business, build financial statements, keep track of deductible expenses, and prepare tax returns. Companies need to hire bookkeepers simply because it makes good business sense to do so. Bookkeepers can do tasks better, leading your company to have a bigger and better profit. Hiring a bookkeeper will make you confident in your numbers because they know what they're doing, and they're doing it well. Catching errors can keep you from hassle down the road with your state or federal taxes. They can also save you from late payments, and the list goes on.

Professional services bookkeeping requires industry knowledge to ensure the sales tax and corporate income taxes have been correctly recorded. Tax-exempt entities are sometimes not required to register for GST if the service they provide is GST exempt. That will ensure the avoidance of unnecessary GST compliance.