Bookkeepers have different duties depending on the business needs of them. Most use accounting software to do their work nowadays. While the role of a bookkeeper is ever-changing, there are some core responsibilities that they all do. If you are wondering what a bookkeeper is responsible for, then you are likely wondering whether you need one or not. Here is a breakdown of what a bookkeeper can do for you:
Streamline the technology and process
Bookkeeping may sound like an outdated profession (who still keeps records in a physical book?), but they are actually adept at keeping up with the latest technology. They are on top of the latest app or the newest solution to a specific problem in your industry. Bookkeepers can find ways to cut your labour costs and make your back office run smoothly.
Manage bank feeds
Bank feeds link to your accounting software, allowing you to view business transactions in real-time. This software should be able to categorize transactions automatically, but a bookkeeper can make sure they are correctly categorized. They may also have to add transactions manually, like a handwritten cheque.
Prepare financial statements
Bookkeepers generally prepare three major types of financial statements, which are the balance sheet, profit and loss statement and cash flow statement. Ideally, you should have monthly summaries of these statements as well as a year-end one.
Handle accounts payable and receivable
Creating invoices, providing statements to clients, and assisting in collections are all a part of accounts receivable services bookkeepers do. The customer tells the bookkeeper when they have been paid so that it can be put in the payment management system. Along with accounts receivable, bookkeepers handle their clients’ accounts payable as well. That means they can make a note of payment deadlines from your different vendors. Adequately managing your accounts payable is essential for maintaining good working relationships with your suppliers and favourable trade credit terms.
Reconcile financial transactions and bank accounts
One of the most important tasks your bookkeeper can do for you is reconciling your financial accounts. It ensures your transaction details in your software match the details on your bank statements. You should routinely reconcile your accounts to prevent fraudulent charges, overdraft fees and incorrectly reported transactions.
Work with your tax preparer to ensure tax compliance
Your bookkeeper will naturally be able to serve as a go-between for you and your tax preparer. That is because bookkeepers know your financial situation inside out, making it easier for them to help file your small business taxes.
Take on some human resources and payroll functions
Depending on your business needs, you could have your bookkeeper can help with processing paychecks and inputting payroll data. They can also help manage timesheets for hourly employees.
If you need help managing your small business expenses or with its payroll needs, contact Padgett Business Services. Our team of experienced and knowledgeable bookkeepers will ensure your books are balanced, so you don’t miss a dime.