Many business owners avoid hiring bookkeepers, and they neglect the importance of keeping track of the financial records of the business. Once a business is all set to go, it is important to make efforts in maintaining good financial records. Any wrong data entry in the business books can be costly. Therefore, seeking help from the bookkeepers of Melbourne would be beneficial for your business. Professional bookkeeping and accounting solutions can help a business stay on top of finances. Bookkeeping can keep you updated on the financial status of your company and help you comply with the newly announced tax laws. In today’s blog, we’ll talk about the most common bookkeeping solutions that every business owner must have for their business.
What are the Responsibilities of Bookkeepers?
The bookkeeper is responsible for tracking the company’s income, expenses, and financial transactions. In addition to this, they also reconcile bank accounts on a weekly or monthly basis. Furthermore, they also help in preparing financial statements and financial reports. Based on your business requirements, bookkeepers perform various tasks in your company. Bookkeepers are responsible for performing various tasks, such as:
Track Financial Transactions
One of the primary duties of a bookkeeper is to keep track of the company’s financial transactions. With an accurate record of business finances, it will be easy for a business owner to know the financial condition of their company.
Bank Account Reconciliation
To detect fraud or fraudulent activity, bank reconciliation is extremely important. This process ensures whether the transaction details in the business books match bank statements or not. If details don’t match, it means there is something wrong. By doing this, you can detect fraudulent activities, and avoid overdraft fees, or wrong-recorded transactions.
Work with Tax Accountants
Bookkeepers act as a translator between you and your taxation accountants. Bookkeepers have in-depth knowledge of bookkeeping, and bookkeepers need to communicate with tax accountants when your accountant is about to prepare and lodge a tax return on your behalf.
Preparation of Financial Statements
Financial statements are important for your business through which you will be able to know whether your business is performing well or not. Basically, there are three types of financial statements that are prepared by the professional bookkeeper, such as the profit and loss statement, cash flow statements and balance sheet. If you don’t know how to prepare these statements, then you can seek help from a Melbourne bookkeeper. The profit and loss statement will show operating expenses and the bottom line of your business. The cash flow statement will help you know how much cash is flowing in and out of the business. The balance sheet is beneficial to know the balance of liabilities and assets.
Apart from doing all of the above tasks, a bookkeeper is responsible for doing the payroll of the business. They may help you in processing paychecks or tax payments. In addition to this, they might help you handle timesheets for hourly employees and overtime.
Do You Need a Bookkeeper for Your Company?
There might be various reasons for hiring a bookkeeper for a company. The following can be reasons to hire an experienced bookkeeper:
- If you don’t have enough time to manage your business books, then you must hire one for your business. Furthermore, you may face difficulty in updating business books because of not having enough time. However, updated business books are important as they will help you during tax season. Bookkeepers for small businesses can help keep your business books updated.
- If you have inaccurate business finances or financial records, then these records can create problems during tax preparation and lodgment. Thus, to keep your business books accurate, it is important to seek help from a professional bookkeeper.
Running a business is not an easy task because as a business owner you have to look after various things, such as business sales, customer relationships, and many more. In between these tasks, there can be little or no time to look after your business books. If you find yourself working hard to manage business books, then you should hire a professional bookkeeper and get a bookkeeping solution for your business by contacting Reliable Bookkeeping Services provider.