Accrual-Based Accounting This is a highly recommended method because it tells the company's financial status based on known incoming and outgoing funds. Because the funds are accounted for in the bookkeeping, you use the data to determine growth.

Generally, you should do your own bookkeeping if you have the time and you're willing to learn how to do it right. If you're just doing your own bookkeeping for the sake of saving money and not learning the best practices, your tax returns will be a lot harder to file and you could miss out on deductions.

Bookkeepers handle the day-to-day tasks of recording financial transactions while accountants provide insight and analysis of that data and generate accounting reports.

Bookkeeping is the process of tracking all of your company's financial transactions, usually by entering them into accounting software or a physical set of “books.” It lets you see exactly where your business is spending money, where your revenue is coming from, and which tax deductions you'll be able to claim.