Office bookkeeping is the process of maintaining the financial records for an office; it is much like accounting, but is often slightly more simplistic. Unlike accountants, people who do bookkeeping for an office are not often required to have any specific licensure, though of course accounting or business bookkeeping experience is very beneficial. Office bookkeeping requires careful records of every expenditure as well as all the income that the office makes; the records should always be kept up to date and carefully balanced regularly to ensure that no mistakes have been made.
Office bookkeeping is used to keep track of any losses that the business incurs, as well as profits made throughout the year. This information is used by the business itself, as well as for tax purposes. It is very important to do careful office bookkeeping for tax purposes, because this determines the amount of tax that the business owes. In addition, the Internal Revenue Service may request the bookkeeping records to resolve any discrepancies on a filed tax return. If the records are inaccurate, this can lead to serious legal consequences.
The information included in office bookkeeping records includes all transactions that the office has. This includes cash, check, or credit card transactions with customers; payroll payments to employees; any payments made to vendors who supply items to the office; daily sales or income; and any other financial transactions that take place. The method with which the books are kept will certainly vary in different offices, depending on the nature of the business, but it is best to develop a clear method that everyone understands and then stick to it.
There are a few different ways that office bookkeeping may be done. Some offices will hire a bookkeeper solely to do this work, and some will hire an accountant if the finances are more complicated. Some offices will make it the responsibility of a number of different employees, and will maintain bookkeeping records through a computer software program. Any of these methods can work, but again, accuracy is of the utmost importance when considering office bookkeeping practices. The bookkeeping records may then be examined by the business owner or manager to determine areas where expenses can be cut, or where other changes need to be made.