Corporatefinanceinstitute com 1 The Corporate Finance Institute Accounting For more eBooks please visit

The Corporate Finance Institute 
Introduction
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4
The Corporate Finance Institute
Accounting
Bookkeeping
PART 01
02
01
03

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corporatefinanceinstitute.com
5
The Corporate Finance Institute
Accounting
Bookkeepers are individuals that manage all the financial data for 
companies. Under the general notion that knowledge is power, 
bookkeepers to a certain degree have a high level of power within a 
company given their access and knowledge of all its financials. With 
proper bookkeeping, companies are able to track all information 
in the company’s books to help make key decision, which include 
operating, investing, and financing matters. Without bookkeepers, 
companies would have no clue about their current financial position 
and any transactions that occur within the company. Just as much 
as bookkeeping is important to the company’s internal users, 
accurate bookkeeping is also crucial to external users: investors, 
financial institutions, or the government who needs access to reliable 
information to make better investment or lending decisions. Simply 
put, our whole economy relies on accurate and reliable bookkeeping for 
both internal and external users. 
Many small companies don’t actually hire full-time accountants to work 
for them because the costs are usually higher. Instead, small companies 
generally hire a bookkeeper or outsource their bookkeeping duties 
to a professional bookkeeping firm. An important thing to note here 
is that many people who have ambitions on starting a new business 
sometimes overlook the importance of trivial stuff such as records of 
every penny spent. Running a business, however, is a marathon and not 
a sprint and to help achieve longevity, bookkeeping is essential! Proper 
bookkeeping and a proper financial trail give companies a reliable 
measure of how well or how poor they are doing. It also provides 
guidance on general strategic decisions and a benchmark for profit 
goals. In short, bookkeeping, once a business is up and running, is 
your best friend so spending the extra time and money on maintaining 
proper records is critical.