It’s no secret that running a business requires time, energy and effort. It also involves a lot of paperwork, especially if your business is small or you have a solo entrepreneur. Luckily, there are bookkeepers. So you can sit back and spend more time doing what you love; growing your business and making great products or services.
Here are the 10 things bookkeepers do for their clients:
- Account Management daily/weekly/monthly
A bookkeeper can monitor all of your company’s financial transactions every day. It is much simpler to monitor your cash flow if they use software to record your sales and purchases.
It also eliminates the need to manually enter information into multiple places.
- Be sure to keep accurate and up-to-date files
A professional bookkeeper’s job is to maintain accurate and up-to-date financial records for a company. Plus, they will be responsible for highlighting any discrepancies between the books and your business accounts, prompting you to take swift action to rectify the situation.
- Ensure Companies Continue to Comply with Laws
Dealing with taxes can be touchy. If you make a mistake, the dreaded letter from ATO will soon be on its way to you. Bookkeepers are important in ensuring that a company complies with all applicable regulations.
Remember that they are intended to aid you, not add to your woes.
- Stay Tax-Ready
Due dates for paying taxes are just as stringent as the laws and regulations themselves. Timelines can easily be missed because keeping the books is rarely a top priority for most small businesses. A professional bookkeeper can ensure that your books are in order and up-to-date, preventing you from having to pay any penalties or interest to the ATO.
- Manage Bank Feeds
At their most fundamental, bookkeepers oversee financial transactions that come in via computer or mobile app. Using “bank feeds,” the software can be connected to your company’s bank account, allowing you to view transactions as they occur.
- Accounts payable management
Payments are typically made by you or on your small business’s behalf by bookkeepers. This can include anything from supplier invoice payments to petty cash and expenses.
- Make financial statements.
Bookkeepers will also be in charge of preparing important financial statements for small businesses. These are examples of profit and loss statements, balance sheets, and cash flow statements.
- Payroll Processing
Bookkeepers provide a variety of services. Some can handle payroll and other human resource functions for small businesses. This can include assisting businesses with processing employee paychecques and tax payments.
- Maintain a Close Eye on Cash Flow
One of the most important tasks a bookkeeper will perform for a small business is ensuring that they have enough cash daily. They can accomplish this by keeping an eye on the revenue-to-expense ratio and providing additional advice if the company requires more available money to operate.
- Preparing the Books For an Accountant
A bookkeeper’s job is to ensure that the accounts are valid and up-to-date when the accountant needs them. This lets accountants use their knowledge to make business recommendations and complete tax returns.
Bookkeepers hold the financial operations of small businesses together. This can be a challenging role, and bookkeepers are often at the end of their wits with their responsibilities and all that is asked of them. Choosing a good bookkeeping service is essential to keep your business running and profitable, so choose wisely!