why is bookkeeping important

The Importance of Bookkeeping

The Importance of Bookkeeping
by Mike Rotondo, MBA, Curriculum Coordinator, Goodwin University Accounting Program

The importance of bookkeeping in any business may seem so obvious to most of us that it hardly bears mentioning, but for many small businesses it is an area of enormous struggle. Understanding the basics of financial statements, basic financial ratios, and what a bank or investor is looking for can be challenging.

Many years ago, a student of mine ran a trucking company out of her house, set up as limited liability company or LLC. She and her husband owned two trucks, one driven by him and the other by an employee. We were talking one day, and she said she didn’t feel like she was making any money. As her instructor, I could not offer professional advice, but I did notice that she was integrating all of her expenses together, business and personal. I told her there would be no way to determine if her business was profitable by continuing that way.

Another student owned a coffee shop and after taking Goodwin’s bookkeeping courses said, “I wish I knew this before I started my business.”

Bookkeepers are on the ground floor of accounting operations, responsible not only for the entry of transactions into the accounting system, but also for generating reports and forms needed by clients and accountants. They are also key in processing payroll and guiding employees in that area when needed.

Technology offers new opportunities to those interested in becoming bookkeepers. Not only can they work to help clients achieve their financial goals, they can also teach their clients to be more confident in managing their money. As the opportunities in remote bookkeeping become increasingly abundant, Goodwin University is well positioned to provide training in this area. With our 19-credit online bookkeeping certificate, students can complete the course in 30 weeks. They will learn to prepare and analyze financial statements, make recommendations to accountants and managers, and prepare for QuickBooks and professional bookkeeping certification.

While the fields of accounting and bookkeeping are ever evolving through new technologies and laws, they are always essential to businesses and other organizations. No owner, manager, non-profit board, or government entity can hope to make sound economic decisions without the financial data bookkeepers and accountants provide. Solid bookkeeping skills and strong computer literacy can help ensure a long and satisfying career assisting business owners — or possibly your own bookkeeping business — in achieving financial success.

Learn more about the Accounting program at Goodwin University.