What are booking keeping services?

Bookkeeping services are the foundational process of recording and organizing a business’s daily financial transactions. They are the necessary first step in the accounting cycle, providing the raw, accurate data that a business needs for financial reporting, tax filing, and strategic decision-making.

Think of Bookkeeping Services Jersey City as the scorekeeper for your business; it simply tracks every incoming and outgoing dollar.

Key Tasks Performed by Bookkeepers

Bookkeepers typically handle the day-to-day, transactional functions of a company’s finance department. Their primary responsibilities include:

1. Recording Financial Transactions

This is the core of bookkeeping, where every transaction is recorded into the business’s General Ledger.

Data Entry: Recording sales, purchases, payments, and receipts.

Classification: Assigning each transaction to the proper account (e.g., Sales Revenue, Office Supplies, Advertising Expense) according to the company’s Chart of Accounts.

2. Managing Receivables and Payables

Bookkeepers manage the flow of money in and out of the business.

Accounts Receivable (A/R): Generating and sending invoices to customers, tracking who owes the business money, and recording payments received.

Accounts Payable (A/P): Entering vendor bills, scheduling payments, and managing vendor relationships.

3. Bank and Credit Card Reconciliation

This crucial process ensures the accuracy of the records.

Matching Records: Comparing the transactions recorded in the business’s general ledger with the transactions shown on the bank and credit card statements.

Error Correction: Identifying and resolving discrepancies, such as missing deposits, uncategorized expenses, or bank errors.

4. Payroll and Sales Tax (Compliance Support)

While the complexity of these tasks can sometimes cross into accounting, the routine execution is a Bookkeeping and Accounting Services Jersey City function.

Payroll Processing: Recording employee hours, calculating wages, deducting withholdings, and ensuring payroll liabilities are recorded correctly.

Sales Tax: Tracking sales tax collected and ensuring the company is prepared to file returns to the appropriate taxing authorities.