The bookkeeper is an individual who assists companies and other organizations keep their financial affairs in order. Bookkeeping is a crucial aspect in the running of your business but how much do you know about the profession that makes mathematical magic? Let’s examine what is a bookkeeper, what are their responsibilities, and what are the benefits of bookkeeping
Who is a Bookkeeper?
The bookkeeper is an individual who assists companies and other organizations keep their financial affairs in order. They handle general accounting ledgers and journal entries (transactions) and prepare financial statements. Every bookkeeping professional is a specialist with their own specialization and experience, just as every business has its own unique financial situation and bookkeeping requirements.
Before we get into the issue at hand – What is a bookkeeper’s job?–let’s go over the basics of bookkeeping. Accounting and bookkeeping are two of the most ancient jobs in the history of mankind. In fact, it is possible to trace the history of bookkeeping to the time of ancient Italy due to Lucia Pacioli who was known as the “father of accounting.”
The year 1494 was when Pacioli released “Summa de Arithmetica, Geometrica, Proportions et Proportionalita (Summa).” Effectively he introduced bookkeeping and accounting all over the globe. Many businesses today use the accounting and bookkeeping concepts to simplify business finances.
Bookkeepers are in charge of giving accurate and up-to-date financial information regarding a company. They are always monitoring the financial health of the business.
Most of the time, the reports they provide go to managers and business owners to assist them in making decisions. Certain bookkeepers are involved in the process of developing strategies.
Bookkeepers can also share tasks with accountants, for instance, the production of annual reports on financials as well as tax returns.
The two most important tasks of small-business bookkeeping include the entry of data and reconciliation with banks. Without these, the other bookkeeping duties are left unfinished. Let’s look at the primary chores, typical additional tasks as well as advanced bookkeeping.
Data entry: recording financial transactions and keeping the books balanced.
Bank reconciliation of the books: Cross-referencing them against bank statements as well as other sources to confirm the accuracy.
Monthly reports: Providing a summary of the financial situation of your business.
Accounts receivable: Create and send invoices, and then follow up to ensure they’re paid.
Accounts payable: Ensure that the invoices of suppliers are correct and that they are paid promptly.
Payroll: Calculating the pay and deductions.
Tax filing: Preparing tax returns.
Reporting at the end of the year: Assistance with an annual income statement as well as balance sheet statements.
Business strategy: creating budgets and forecasts. Also, providing advice on ways to improve the efficiency of your business.
Processes for business: reviewing the software, conducting research and implementing solutions as well as internal controls that streamline the company and increase efficiency.
Training: Work with staff members to learn the best practices in bookkeeping and how to make use of software tools.
Virtual office: Offering the full-service virtual office including telephones, postal addresses and emails.
Liaison: meeting with accountants on behalf of clients, regarding taxes and financial queries.
If you’re considering hiring a bookkeeping professional or improving your company’s bookkeeping procedures, you should consider your options for bookkeeping.
DIY (Do it yourself): If you are a committed proprietor of a business, you could be required to oversee the daily activities. This is why some business owners opt to tackle bookkeeping tasks. If you’re a natural to numbers or organization, this choice could be a good fit for you. If you choose to handle yourself bookkeeping you need to think about the tasks that take a lot of time and the way they can distract you from other tasks.
Professional in-house: If you’d prefer to let a professional handle your bookkeeping, think about hiring a bookkeeper within your company. Based on your requirements and budget, you can employ someone on a part-time basis or full-time with the basis of a contract. The hiring of a bookkeeping professional can assist you in reducing the burden of hours, however, it is usually one of the more costly options for small-scale business owners.
Software for bookkeeping: For many business owners looking for a solution to bookkeeping that fits in the middle is the ideal scenario. By using Bookkeeping Software you have access to efficient and simple-to-use tools that let you be the leader in your bookkeeping tasks.
Virtual or remote bookkeepers: Perhaps you’d prefer to outsource the task of calculating numbers and reports to experts. Employing online or virtual bookkeeping professional might be the best option to meet your bookkeeping requirements. You can contact an online bookkeeping professional who can review your company’s financials. From tax filing assistance to monthly reports, and much more.
Bookkeeping and Bookkeepers Have Many Benefits
You are aware of what a bookkeeping professional is and what their daily responsibilities appear to be. But how can these assignments translate into advantages for your company? A great bookkeeping system goes far beyond balance books and recordkeeping. Check out some advantages bookkeepers provide for small businesses.
- Bookkeepers make time in your work schedule to focus on developing your vision, enhancing processes, and improving your profitability.
- The hiring of a bookkeeping professional will reduce the possibility of error. With their training and experience, professional bookkeepers will make sure you’re creating precise financial reports and information.
- Certain bookkeepers can offer tax preparation, which could be extremely beneficial in dissecting the complicated small-business tax regulations.
- If an organization conducts an audit of your business, having sound bookkeeping records in place is a major benefit. The auditing process usually is as simple as a review of your financial records. But it can be more complicated than they need to be when your accounting records aren’t in order.
Advantax Accountants is an online bookkeeping company operated by professional accountants. AA offers you the services of a bookkeeper who is supported by a group of experienced small business specialists. We’re here to take the hassle out of running your personal company. The bookkeeping team imports bank statements that categorize transactions and prepares monthly financial statements. Contact us for more details.