Bookkeepers ensure that the expenses, income, and transactions of the company are recorded in the books and reconcile the financial accounts on the monthly basis. Bookkeepers could also assist with the financial statement and financial report preparation.
The bookkeeper may perform different tasks depending upon the requirements of the businesses. Most of the bookkeepers make use of accounting and bookkeeping tools to do their tasks. There are certain things that every bookkeeper can take care of for your business.
Below are some core tenets to what Bookkeeping Services actually are:
Reconcile Your Bank Accounts
The crucial task for the bookkeeper is to reconcile the financial accounts. Account reconciliation assures that the details in the accounting software match the transaction details on the bank account statements, credit card statements, and financial accounts statements.
It is significant to reconcile the accounts to avoid overdraft fees, incorrectly recorded transactions, and fraudulent charges. Reconciliations are made easy by accounting software, human touch is required to ensure all transactions are recorded efficiently.
Handling Bank Feeds
The bookkeeper must manage the transactions of your accounting system through the bank feed. The bank feed links the accounting software with the business bank account and allows you to see the transactions in real-time.
The accounting software must be enabled to categorize the transactions automatically. To exemplify, a credit card transaction from an airline could be categorized automatically as the travel expenses. Bookkeepers keep a close eye on such transactions and assure that they are categorized efficiently.
Manage Accounts Receivable
Managing accounts receivable can take some forms. The small business staff could be entering their estimates or invoices and could be getting the payments for their invoices.
There is another option, the clients make use of the industry-specific estimating program to evaluate the job, and then they come up with the total. Now they enter the estimates into the QuickBooks |Online account and create progress invoices as the project moves. Creation of invoices and sending them to the customers, giving statements, and providing assistance in the collection is a part of A/R services that are provided to the clients.
Manage Accounts Payable
Many bookkeepers manage their clients’ accounts payable along with account receivables. It implies that the bookkeepers can manage all the vendor bills that the company gets. Bookkeepers make note of the payment deadlines for each vendor and early payment discounts if possible, and submits payment to the vendor. As the company grows, bookkeepers may add additional approvers to give a green signal to the payments. Efficiently managing the accounts payable is very crucial for managing relations with the suppliers and keeping positive trade credit terms.
Work with the tax preparer
The basic service that bookkeepers fail to mention is that they will be serving as a translator between you and the certified public accountants. When you are about to file your small business taxes, it is easier to have your bookkeeper contact your tax preparer, as bookkeepers have complete knowledge of your books.
Prepare Financial Statements
The bookkeepers prepare three main financial statements for the businesses as the profit and the loss statement, cash flow statement, and balance sheet. It is an efficient idea to have updated financial statements each month and at the end of the year. The profit and loss statement shows the bottom line of the business and the operating expenses. The balance sheet depicts the balance of assets and liabilities of the business. The cash flow statement analyses the cash flowing in and out of the company. The accounting software enables the bookkeepers to prepare the financial statements and share these with the accountants and the tax preparers.
The bookkeepers also fulfill the functions of payroll and human resources. Your bookkeeping services could have a payroll offering, or they could help you during the processing of tax payments or paychecks and forms. They could just input data into the accounting system after the payroll service provider submits reports to you, or even they could import the data from the file. Bookkeepers could also assist you to handle the timesheets for hourly employees or overtime.
Get back to your Business
The bookkeeper holds abundant skills that could bring wonders to your business. The bookkeeper not only consults accounting books and does simple data entry, but there is also a lot more that goes with bookkeeping service than many small business owners realize.
At the end of the day, the answer to the question “What Bookkeepers Do?” depends upon what you and your small business require from the bookkeeper. Reliable Bookkeeping Services provides you the most efficient and reliable bookkeepers who may assist you during any hurdle in your business. Call Now.