13 Things Bookkeepers Do For Small Businesses Krizellda Flores

The bookkeeper receives shipment information from the shipping department and uses it to prepare billings to customers. The bookkeeper also makes collection calls to customers whose invoices are overdue for payment. As part of the billing process, the bookkeeper also remits sales taxes to the government.

The Unsung Hero of Business Success: The Power of Bookkeeping

In the digital age, accounting software such as Quickbooks and Xero has become a critical tool for managing small business finances. Bookkeepers often play a key role in implementing and maintaining accounting software systems that best suit your business’s needs. They can help you select the right software, set up your accounts, and customize the system to provide the most relevant and useful financial information. Efficient inventory management is crucial for small businesses, particularly those in retail or manufacturing sectors. Bookkeepers can assist with tracking inventory levels, updating records, and ensuring that your business maintains the right stock balance. By keeping an accurate inventory record, bookkeepers help prevent stockouts, overstocking, and product obsolescence, which can negatively impact your business’s profitability and customer satisfaction.

Master the bookkeeping basics

Your business’s success depends on multiple factors, including planning, strategizing, and marketing. An income statement, also known as a profit and loss statement, provides a summary of a business’s revenues and expenses over a given period. This report helps businesses understand their profitability and identify areas for improvement.

However, bookkeepers are crucial to your business, regardless of its size, because they can help sort out your finances. Finances are often the first thing that goes down the drain in small companies, often due to poor management. At Sunrise Virtual Assistant Services, we are proud to offer comprehensive bookkeeping services. Our staff of professionally trained virtual assistants has experience with various accounting software systems so that you can be sure that the job is done right. As such, the role of a bookkeeper is essential for any business regarding accurate payroll management and human resources tracking.

Financial Statements

However, all of the things we’ve mentioned above don’t necessarily mean you need to outsource to a professional. While it sounds like hard work, it’s quite straightforward when you know what you’re doing.

Benefits of Working With a Professional Bookkeeper on Your Business

Bookkeepers track income, expenses, and other financial transactions to provide real-time cash flow information. This data enables you to make informed decisions about budgeting, investing, and managing your business’s finances. A bookkeeper’s job is to ensure that all your business records are up-to-date and accurate. This includes your financial statements, accounts receivable and payable, inventory records, and payroll information. They will also ensure that discrepancies between the books and existing business accounts are flagged and rectified quickly.

• The business owner has an investment, and it may be the only investment in the firm.Read some of our recent reviews and see what it could be like having Bench on your books.
• Bookkeepers systematically record your business’s financial transactions, such as income, expenses, assets, and liabilities, following accounting standards and best practices.
• In summary, the expertise of bookkeepers in implementing and maintaining accounting software is essential for small businesses looking to optimize their financial operations in the digital era.
• By understanding the value of bookkeeping services, you can make informed decisions and optimize your business operations for long-term success and growth.

Track cash transactions

At least once a week, the bookkeeper needs to make sure all the numbers add up and there is enough cash to cover expenses. It’s packed full of useful tips on how to get started, how to maintain the books and what to look for when choosing the right software to meet the Making Tax Digital (MTD) initiative. Bookkeepers also make inventory reports for small businesses by counting the items in stock. If there are any differences, they tell the business so that problems can be fixed quickly. Most of the time, it’s done at the end of a business’s financial year, and the numbers are put in reports like profit and loss statements. Professional bookkeepers ensure your records comply with local, state, and federal tax laws, reducing the risk of audits and penalties.

• However, the benefits of hiring a bookkeeper are undeniable, especially when tackling the endless bookkeeping tasks that come with running a business.
• Automated data entry systems can sync with point-of-sale systems, bank accounts, and other financial tools, allowing for real-time, accurate record keeping.
• They can also help find potential areas of improvement or cost savings related to managing finances.
• These insights enable you to optimize inventory management processes and make informed purchasing, production, and pricing decisions.

It’s far more efficient and less costly to set up proper bookkeeping from the start than to try cleaning up disorganized records later. Bookkeepers prepare invoices and send them to your clients so you can receive payment on time. They also manage the accounts receivable ledger and chase late payments to keep your records accurate. By analyzing income statements and balance sheets over multiple periods, you can gain valuable insights to guide strategic business decisions. Comparing revenue and expenses in income statements across months or years reveals trends in sales growth, profitability, and cost management.

Bank Feed Management

By partnering with a team of bookkeeping experts, you can manage your business better and enjoy a healthier work-life balance. Handling bookkeeping internally could pose significant risks if you 13 things bookkeepers do for small businesses lack the necessary skills and qualifications to handle the work. By outsourcing, you can ensure that your financial records are accurate and compliant with HMRC and legal requirements. Outsourcing your bookkeeping needs is a great way to save money while getting expert services. Instead, you’ll pay a competitive rate for a team of professionals who will handle all your bookkeeping needs. They flag any inconsistencies between the books and your business accounts to resolve problems quickly.

By prioritizing backups, you guarantee the peace of mind that your financial records are always recoverable, allowing you to focus on your financial goals with confidence. Similarly, reviewing balance sheets for changes in assets, liabilities, and equity highlights fluctuations in inventory levels, debt obligations, and overall financial strength. Identifying these trends allows you to make informed choices, such as adjusting marketing campaigns to capitalize on rising sales trends. The same goes for using dedicated business credit cards instead of your personal cards, so you leave a clear spending trail.

Sales tax is levied on the sale of goods and services and varies depending on the jurisdiction. Bookkeepers accurately track and calculate the sales tax your business needs to collect and remit to the appropriate tax authorities. Instead, trial balances showing the total number of employee expenses will be produced and reviewed by accountants. Financial decisions regarding a company’s tolerance for additional employees might be made using this information.

The bookkeeper is responsible for filing all supporting documents for customer billings, supplier invoices, and payroll. In addition, bookkeepers must ensure that these withheld taxes are remitted to the appropriate tax authorities and reported accurately on tax forms. To keep the taxman happy and stop you from paying any additional fines, a bookkeeper will make sure your records are accurate, so you’re always prepared for tax.