Bookkeepers handle the company’s income, expenses and transactions in the company’s books and the company’s financial accounts are reconciled on a monthly basis. Bookkeepers help in preparing a financial report and financial statement. Bookkeepers do the tasks as per the various business requirements. Even, today, many bookkeepers use accounting software for their work and their role in the business is multifaceted. Here given are some of the core bookkeeping services which are must to make bookkeeper the best.
Sorted Bank Issues – The main task, any of the bookkeepers is to reconcile the bank accounts. Getting done account reconciliation to make sure the transactions are entered in detail in the accounting software and they matched to the bank account statements, financial account statements, and the credit card statements. This is too important to keep you safe from fraudulent charges, paying overdraft fees or save you from the wrong recorded transaction.
Manage Bank Feeds – This is the basic bookkeeping service is to manage the transactions using the accounting system bank feed. With bank feed, one can link up the accounting software and the business bank account, and so can see every transaction in real-time. There is some software, they divide the transactions into various categories. The task of a bookkeeper is to keep an eye on that to make sure they are being categorized correctly or not. Bookkeepers can also add the transactions manually which are not there in the bank feed. These are the transaction which is generated outside the accounting system like handwritten bills or cash payments.
Handle Accounts Receivable – Accounts receivable management is taking on a few forms. This might happen, the small business staff having their own invoices or estimates and so getting the money against the invoices. Making invoices and sending them to customers, offering statements are services must to offer by the bookkeeper. Customers also get to know the bookkeeper when they have been paid and then the details are kept safe. Later, these details are kept safe and a deposit is created to match what the clients take to the bank.
Handles Payable Accounts – Along with managing the receivable accounts, many bookkeepers also handle the accounts payable. A bookkeeper who handles all the vendor bills company is getting and also note down the payment deadlines for every vendor and make doing the early payment to avail discount and give the payment to the vendor, then considered to be the best bookkeeper. With the growth of the company, bookkeepers also get the additional approvers for payments. Proper management of accounts payable is important for maintaining relations with the clients.
Working With The Tax Preparer – This is the main service, though, still, many bookkeepers fails to mention that, they are going to serve to be the translator between you and the enrolled agent. Bookkeepers have, the more knowledge of the books and so this might be easy to work with a bookkeeper and the tax preparer to file the small business taxes.
Making financial Statements– An experienced bookkeeper creates the three major financial statements for your business which is profit and loss statement, balance sheet and the cash flow statement. When the financial statement is updated monthly and at the year-end, then this would keep you sorted. Profit and loss statement indicates the business’s bottom line and operating expenses. Balance sheets are necessary to show the balance with the business’s assets and liabilities. Cash flow statement shows the cash flowing into or going out of the company.
Payroll Process – Bookkeepers get done the payroll and human resource functions. Check for the bookkeeper offering payroll or may assist you in the processing of paychecks or tax payments or filling forms as well. Bookkeepers also help you to manage the timesheets for overtime done by employees on an hourly or weekly basis.
So, these are the important points one must consider when hiring the bookkeeper for your business.