10 Things Bookkeepers Do For Small Businesses

10 Things Bookkeepers Do For Small Businesses

Bookkeepers are CPA-qualified accountants and are trained business advisors to help you with your small and medium-sized business setups. Running a business has many tiers, and while you might feel strongly invested in your business and want to participate in the running of every part of it, it can sometimes cause you to suffer great losses in time and money.

Therefore it is advised to invest in a good bookkeeper to help with the smooth and efficient running of your business. Here are some ways that a bookkeeper can help streamline your business and improve its efficiency and productivity.

1. Routine Account Management

They use software to watch out for day-to-day transactions in your business by keeping track of every sale and purchase for each day. This can help them keep a close eye on incoming cash flow, and by using software, they can save time on entering data manually.

2. Maintain Updated and Accurate Records

For any successful business, it is essential to maintain accurate records of all transactions made and to update them regularly. Any amount spent anywhere must be documented and updated in the system. This way, your finances are in order, and your business stays aligned.

3. Stay Aligned With Laws

It is essential to follow the business laws dictated by the government. Sometimes they can be complicated and are often updated as amendments are frequently made. A bookkeeper’s job is to make sure your business is aligned with the governmental laws to prevent any lawsuits from happening.

4. Process the Payrolls of All the Employees

Some businesses require bookkeepers to prepare and process the payrolls as well as assist with tax payments, while others have HR departments who handle this function of the business.

5. Sending Out Invoices and Managing the Accounts Receivable Ledger

To ensure that you receive all your payments on time, a bookkeeper’s job is to prepare and send out invoices to your clients in a timely manner to prevent any delays. They must also chase after clients to pay if they are delaying payments.

6. Making Financial Statements

Their job also includes making some important financial statements for the company such as profit and loss statements, cash flow statements as well as balance sheet statements.

7. Prepare a Book for the Accountant

Bookkeepers have to keep an updated record for all transactions made for the accountant who will then use these records to make business recommendations and complete tax returns that are needed.

8. Handle Foreign Currency Transactions

Bookkeepers maintain foreign currency accounts and can use the help of bookkeeping apps that can analyze exchange rates instantly.

9. Prepares You for the Tax Payable

If your records are accurate and updated, you will never be underprepared for the tax payable when the time comes.

10. Keeping an Eye on the Cashflow

To make sure your business doesn’t run out of money to keep it functioning on a daily basis, the bookkeeper is required to keep a close eye on the cashflow along with advising on when more cash is required.

Conclusion

Hiring bookkeepers can be very beneficial for a small and medium-sized business and can help its functioning in a smooth and efficient manner. Contact Business Rocket to help you with all your bookkeeping needs