What does a bookkeeper do? A bookkeeper handles all the tedious, but vital, processes that you may have not considered when you started to imagine your dream business. Below you will learn how a bookkeeper can help manage those vital processes for new and existing businesses so that you can focus on running your establishment.
Bookkeepers are multifaceted workers dedicated to your financial success, and they look different from business to business based on each client’s needs. Let’s talk about what a bookkeeper can do for you!
BANK FEEDS On the most basic level your bookkeeper is “balancing your checkbook” also known as reconciling your bank statements each month. Here your bookkeeper will use accounting software, such as Quickbooks, Xero, Sage, or another, to manage your bank transactions and feeds.
ACCOUNTS RECEIVABLE Bookkeepers also may handle Accounts Receivable for clients. They will input invoices into your accounting software and help you manage monies owed as well as collections to keep your cash flow on track.
ACCOUNTS PAYABLE Another service option is Accounts Payable. Making sure the bills are paid on time and properly without hurting cash flow is what some owners need from their bookkeeping professional. This information must also be inputted into accounting software, which takes time and resources.
PAYROLL Payroll is another avenue in which bookkeepers help businesses. Often times how payroll is managed is based on the size of a company and its industry because these factors can change the complexity of the payroll process.
Some businesses will outsource payroll while others complete the process in-house. In-house can mean the business owner prepares payroll or that the bookkeeper does. No matter which process is used, the bookkeeper can still record payroll to the books based on the previously prepared payroll materials. If the bookkeeper prepares your payroll, it is advised you make sure there is a checks and balances system in place. Your bookkeeper should suggest this to you as well.
CASH FLOW The Statement of Cash Flows allows you to have an accurate and real-time picture of where the profits and losses are in your business. All of the above services should be tracked in order for you to best understand your company’s cash flow. Regardless of if your bookkeeper provides all or some of the above services, s/he will be able to keep you informed of where your money is coming from and where it is going each month.
TECHNOLOGY & PROCESS GURUS Bookkeepers are also a great source of information when it comes to the latest technologies, applications, and systems to use in your business. Because they work with so many clients they use and see different recourses’ benefits and limitations first-hand. Plus, a great bookkeeper is always seeking new ways to save their clients money and make their clients’ lives easier.
TRANSLATOR A bookkeeper by default is the person who will be speaking on behalf of your books to your CPA or EA. Bookkeepers have a more intimate knowledge of your books and often times that makes it easier for them to communicate directly with your tax preparer, payroll provider, or vendors to name a few. But of course, a great bookkeeper also communicates with you and can provide a thorough breakdown of your books to you, as the owner.
OWNER’S ROLE Nothing makes up for an involved owner. Maintaining the books for your business is a grand task that will ensure your business’s success, but that isn’t an owner’s primary role. Your role is to oversee the bookkeeper, and that is done via a system of checks and balances and monthly report meetings. Never allow the financials of your business to stop at the bookkeeper. Make sure you know and understand what your bookkeeper is doing each month.
Again, you must remember, each of these duties can look vastly different depending on what a business needs and already has in place. A bookkeeper is meant to make your life easier not to add stress or confusion to your business.
If you’re reading this article to determine if you can skip the bookkeeper, this blog post makes it sound much simpler than it is. The most basic breakdowns of bookkeeping tasks have been listed.
Bookkeeping is necessary for a successful business. Thus, you should hire a skilled and trained professional, a certified bookkeeper. Much like you hire a position-specific trained and experienced employee. Yes, you could be very good at keeping your books currently, but is that really the best use of your time, and are you getting everything out of it that you possibly can?
Now that you know what a bookkeeper does for you, know that bookkeeping isn’t just for big firms or businesses bigger than yours. Bookkeeping is for everyone and can be financially attainable for you too! Contact Class One Bookkeeping LLC today for a free consultation.
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