Bookkeepers are essential to any small business. They do a lot of different essential tasks including but not limited to chasing payments, producing invoices, helping with payroll, and even getting your business ready for tax season. However, that's not all they do. Below, you will find a list of different things they do.
1. Daily Management Of Accounts
One of the things they do is help you stay on top of your accounts for all of your daily transactions. It's much easier to keep track of all of your sales or purchases by using software and that is what they use. That way, they will be able to accurately track all of your cash flow to give you updated guidelines.
2. Maintain Accurate Records
Getting a professional bookkeeper like those at Bookkeeping Intelligence
is a good play because they will ensure that all of your company's records are fully updated. Likewise, they will be tasked with flagging all of the inconsistencies that crop up between both your accounts and your books. That way, you can deal with problems as they come up.
3. Keep Your Business In-Line With The Laws
Dealing with taxes can be a difficult thing. You need to have a good amount of expertise if you want to survive. A simple and seemingly harmless mistake could have a letter from the HMRC arriving at your mailbox shortly. This is why it is so important to get a professional bookkeeper. That way, they will be able to ensure your business remains as aligned as possible with the relevant laws that apply.
4. Keeping You Prepped For Tax Season
As with any law or regulation, deadlines for tax season are extremely strict. Despite that, doing the books isn't usually a priority for small business owners. Therefore, they are much more likely to allow a deadline to sneak through. To keep the taxman as happy as possible and to keep you from having to pay a lot of fines because of it, they will ensure your records remain as up to date and accurate as possible. That way, you're always prepped for tax season.
5. Management Of Bank Feeds
Another important thing they will do is manage your bank feeds. They will be managing any transactions that are brought in through the use of tax software
. Your bank will likely be linked to your business account and it will enable you to get real-time updates and feedback.
6. Deal With Accounts Payable
A bookkeeper is tasked with managing and making payments on behalf of your small business. They will be handling all kinds of payments including supplier invoices, general expenses, and petty cash.
7. Send Out Invoices
They are also responsible for sending out invoices. That way, you will get paid by your clients when they are supposed to. Managing the ledge is important and chasing late payments is another job they will be doing to ensure you are getting paid what you are owed.
8. Preparation of Financial Statements
Professional bookkeepers will be fully responsible for prepping a lot of the important financial documents for smaller businesses. This can and will include different things like profit and loss reports, your balance sheet, and even any cash flow statements
you have. These are important because they can dictate the financial health of your business.
9. Process Payroll
They will offer a lot of different services based on the bookkeeper in question. Some will handle payroll and some might not.
10. Foreign Currency Transactions
A lot of them will even handle any foreign transactions that occur with your business. They will use the exchange rate to ensure everything is done accurately.
11. Perform Stocktake
A lot of smaller businesses will have bookkeepers producing the right inventory reports through the counting of stock items. If they find anything that isn't right, they will report back to the business to ensure the problems are quickly addressed.