Online business owner - You need a bookkeeper. Or be one.
If you’re a small business owner, you’ll be familiar with juggling several tasks at once. As well as keeping things running, you need to generate income, keep your customers happy and look after financial information. Tracking the financials can be a chore though, and one of the biggest questions you might have is who you get to help with your accounts
What do bookkeepers do?
Here are some of the tasks of bookkeeper that will help to keep your business running smoothly:
- Keeping track of daily transactions
A bookkeeper can handle the recording of day-to-day bank transactions. If the accounting software you use has daily automatic bank feeds, this is a great tool for your bookkeeper to use. When your bank statement lines are fed into your accounting software, it’s much easier to keep an eye on cash flow and it also saves on data entry time.
- Sending out invoices and managing the accounts receivable ledger
Preparing invoices and sending them to clients is usually the bookkeeper's responsibility. Managing the accounts receivable ledger – and chasing late payment – is also likely to be done by a bookkeeper.
- Handling the accounts payable ledger
Up to a certain dollar amount, it's usually bookkeepers who will make payments on behalf of the business. This includes payment of supplier invoices, expenses and petty cash.
- Keeping an eye on cash flow
One of the most important tasks for a bookkeeper is making sure the company doesn't run out of day-to-day money. They can do this by watching the balance of revenues to expenses. Then they can take action or offer advice if it looks like the company needs more ready cash.
- Preparing the books for the accountant
It's the bookkeeper's job to ensure that the accounts are valid and up to date when the accountant needs them. This allows the accountant to use their skills and knowledge to make business recommendations, report to the board and complete company tax returns.
In summary, it's the bookkeeper who does the day-to-day work so that the accountant can concentrate on strategic financial operations. So bookkeepers play an important role – without them, accountants can't do their jobs.Bookkeeping helps your business run smoothly
Bookkeeping is a vital job in any business. This is true whether you do the work yourself or hire someone to do it for you.
Without proper bookkeeping, your accounts will not be accurate. That means your accountant won't get a clear picture of your company's finances and you can’t make strategic business decisions.
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