What is Bookkeeping & why it is important?

So what happened to the accounting and accounting departments? What do these people do every day?

Well, one thing they do that is really important to everyone who works there is payroll. All salaries and taxes earned and paid by each employee in each pay period must be recorded. The payroll department must ensure that appropriate federal, state, and local taxes are withheld.

The payslip attached to your payslip records these taxes. They usually include income taxes, social security taxes, and employment taxes payable to the federal and state governments. Other deductions include personal deductions, such as pensions, vacations, sick pay or medical benefits. This is a critical function. Some companies have their own payroll department; others entrust it to specialists.

The accounting department receives and records every payment or cash received from customers or customers of a company or service. The accounting department must ensure that money is withdrawn accurately and held in the appropriate accounts. They also control where the money goes; how much remains available for areas such as payroll, or how much is used to pay the company’s debts to banks, suppliers, and other obligations. Some also have to be invested.

The other side of the credit business is the area of ​​debt, or cash disbursements. A company issues many checks throughout the year to pay for purchases, supplies, payroll, taxes, loans, and services. The accounting department prepares all these checks and records to whom they are paid, how much and for what. The accounting department also tracks purchase orders placed for inventory, such as products to be sold to customers or customers. In addition, they track assets such as company property and equipment. This can include office buildings, furniture, computers, even smaller items like pencils and pens.

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