Bookkeeping is important for running any business, and it can be especially critical for startups. Some business owners may do their own bookkeeping, and while it is possible to do that if your company is still in the start-up phase, it can still be time-consuming and confusing, particularly if you are not familiar with accounting concepts.
As your business grows, there is a greater need to hire a professional bookkeeper to do the recording and maintain your business’ financial transactions.
So, what exactly is a bookkeeper and what do they do?
What exactly is bookkeeping?
In simple terms, bookkeeping provides a clear record of where money is spent and how much profit is made.
Okay, so why is it important?
Accurate financial records are essential for making sound decisions about where to allocate resources and how to grow the business. Without accurate bookkeeping, it’s difficult to make sound financial decisions or plan for the future.
Who needs a bookkeeper?
If you’re a small business owner, chances are you’ve thought about hiring a bookkeeper at some point. You might be wondering, “do I need a bookkeeper?” Here are some people and businesses that need them the most:
- Entrepreneurs who want to focus on their business, not paperwork
- Franchises that want to streamline their operations and make it easier for employees to keep track of finances and inventory
- Business owners who want better insights into their company’s financials
How bookkeepers help businesses
Bookkeepers can work in a variety of settings, including businesses, non-profit organizations, and government agencies. In addition, they play an important role in the company’s financial management. The exact duties and responsibilities of a bookkeeper can vary depending on the size and type of business they work for. However, there are some common duties and responsibilities that bookkeepers typically have.
The typical tasks include the following:
- Data entry and tracking of income and expense transactions
- Sending invoices to customers and ensuring that collections are made within the agreed credit terms
- On-time processing of bills from supplier
- Reconciling bank, credit card, and other accounts
- Preparing financial statements, such as the balance sheet, income statement, and cash flow statement
- Reporting any discrepancies in financial reports
- Updating and maintaining the general ledger
- Assisting with internal and external audits
Other functions that bookkeepers may perform are:
- Processing payroll
- Preparing and monitoring taxes
- Budgeting
- Financial planning
Bookkeepers need to have strong attention to detail in order to catch errors and prevent them from occurring in the first place. They also need to stay up-to-date on changes in accounting standards and laws. On top of that, bookkeepers must be able to offer expert advice on financial matters, such as which financial tools and processes are best for the business.
If you are interested in getting a bookkeeper for your business, feel free to reach out to us, and we’ll gladly offer the best bookkeeping solutions that suit you.
