Can a Bookkeeper Really Help My Business?
While all bookkeepers share many of the same basic job duties, your company’s needs will determine the various hats a bookkeeper may wear. Most owners will agree they didn’t start their own companies to reconcile bank statements each month or handle financial transaction. Business owners want to focus more on what they do best, and normally, that is to sell products and services.
Bookkeepers are hired to manage and record financial transactions that come through your accounting system’s bank feed. This could include debit and credit card transactions, deposits, checks, and any transactions related to your accounts receiving and accounts payable processes. At the end of the month, a bookkeeper can then look at statements and reconcile the accounts and check for any discrepancies.
Accounts receivable can be handled in multiple ways and many bookkeepers working in accounts receivable are responsible for solely recording any payments collected from vendors, customers, and so forth. Other businesses may require bookkeepers in accounts receivable to be responsible for creating invoices, sending statements, and recording payments on accounts. So again, job responsibilities will vary among the company and the responsibilities assigned.
Likewise, those in accounts payable may be given various responsibilities, as well. Your accounts payable is essential to making sure you pay your debts to your creditors and/or suppliers. Any debts will appear on a balance sheet under your current liabilities. Essentially, your accounts payable are a record of IOUs from one business to another. Your accounts payable will consist of both short-term debts, such as payroll expenses, income taxes and long-term debts, such as lease payments, individual notes, retirement benefits, and other obligations to be paid over a long term.
A skilled bookkeeper will provide a clear picture of your company’s financial status, making it easier for you to make healthy financial decisions, which in turn helps make your company more competitive and profitable. Because a bookkeeper has a thorough view of your business’ finances, they can be valuable in making day-to-day decisions, such as whether your company can afford to hire a new employee, and if so, what your company can afford to pay. It is that your cash flow remains optimal at all times. A bookkeeper can assist in maintaining cash flow to keep things running as smooth as possible.
Accurate bookkeeping is not only helpful in providing you with a portrait of your company’s health, but it is also essential to making sure you don’t land in a hot seat with the IRS. Failing to report sales and payroll taxes can jeopardize your ability to operate your company and will inevitably bring an end to your thriving business that you have worked so hard to build.
Last but not least, through newer technologies, bookkeeping and accounting has evolved and continues to evolve. A bookkeeper can be beneficial to a business owner by keeping them up to date on the latest bookkeeping tools and accounting technology. With so many ways to automate accounting and the bookkeeping process, a bookkeeper can save business owners a great deal of both time and money. There are multiple apps available as well to help make your office runs smoothly and efficiently. Business owners should always seek a bookkeeper that is up to date with current bookkeeping software and knowledgeable on technological advancements.