When searching for a bookkeeper, a business owner might have already tasked an employee to manage the finances and keep track of account information. Often employees can cover the day-to-day invoices and maintain organization of the accounts early on in the business. With continued success, the difficulty and complications of managing finances could grow exponentially and leave the employee struggling to keep up with the demand on top of their other assigned responsibilities. As growth continues, a priority is to contact professional accounting services to hire a bookkeeper to handle a business’s increasing financial needs.
At Delta Wealth Advisors, we have prepared a complete accounting services guide to help you begin.
In this guide, we highlight how a bookkeeper does more than just “keep the books.” They also tailor an individual financial plan to your business’s needs and goals. Understanding what a bookkeeper does will help you make an informed decision on what best suits you and your business. So what is a bookkeeper’s job description, and what services do they provide?
What Is a Full-Time Bookkeeper?
In short, a bookkeeper is a professional who manages a business’s accounts by creating and maintaining records. Data entry and bank reconciliation are the two principal responsibilities in bookkeeping. Bookkeepers use specific software programs to accurately enter financial transactions like debits and credits. These entries create balance sheets, statements of cash flows and income statements while maintaining the accuracy of accounts. They allow business owners to construct budgets, recognize trends, and plan for the future. Bookkeepers handle all of your finances so you and your employees can focus on the business and clients.
What Does a Bookkeeper Do on a Daily Basis?
Understanding what a full-time bookkeeper is essential in deciding what’s best for your business. In general, there are 10 functions of a bookkeeper:
- Enter data - The main component in bookkeeping is assuring all data is entered accurately to keep your financial records up-to-date.
- Use bookkeeping software, spreadsheets, and databases - To complete data entry, these programs ensure the accuracy of business information is managed correctly.
- Categorize expenses and income - It is essential to consider business income, what is spent, and what it is spent on. Not only is it good for business, but it maintains a record for taxes.
- Reconcile bank accounts - This guarantees all business transactions across bank and credit accounts agree with each other. Everything is revised and corrected.
- Administer payroll - It is of utmost importance that pay and deductions are correct for records and employees.
- Generate financial reports - Business owners are given balance sheets, income statements, and totals by account. Owners can see their finances and how their business is performing.
- Prepare tax information - When tax season comes all of your expense information is compiled and prepared for filing with an accountant.
- Meet with accountants - A bookkeeper meets with accountants on behalf of their clients. In particular, they assist with finances and taxes.
- Create business strategies - Business owners are given assistance with creating budgets and creating business improvement plans.
- Handle accounts payable - A bookkeeper makes payments on behalf of a business.
What Does a Bookkeeper Do For a Small Business?
Now that we’ve discussed what a bookkeeper does, why hire a bookkeeper for your business?
The most frequent reason entrepreneurs hire a bookkeeper is time. Entering in each transaction can feel tedious and is time consuming. A skilled bookkeeper can accurately, quickly and efficiently record transactions. This frees up the business owner to spend their time growing and nurturing the business.
One driving factor behind hiring a bookkeeper is the ability to find financial security and peace of mind knowing your accounts are correct. A bookkeeper helps manage everything so you can focus on your other duties as an owner without worrying about keeping track of your invoices and other financial data. Your accounts will always be up-to-date, organized, and accurate.
Not only do bookkeepers oversee daily financial data, but another important element to consider is payroll and tax forms. Keeping track of your employees’ payments and taxes can be overwhelming, but these responsibilities would be handled by a bookkeeper accurately and efficiently.
Bookkeepers lift a significant burden while accurately maintaining all of your business accounts. They’re also available to you for any questions you may have regarding your finances and business needs.