What exactly does a bookkeeper do?
A bookkeeper keeps track of the day-to-day business finances. Bookkeepers help businesses and organizations keep their finances on track by monitoring and managing different accounts and transactions, including managing all income and expenses. We collect, organize, and store a business’s financial records, and also put that information into reports such as cash flow statements and profit and loss statements.
A bookkeeper’s duties may include:
- Complete data entry and record all incoming and outgoing transactions.
- Use bookkeeping software, spreadsheets, and other apps to post up-to-date financial transactions.
- Generate financial reports, such as balance sheets and income statements.
- Maintain and monitor financial records for accuracy.
- Reconcile and report any discrepancies in financials.
- Request and receive payments from customers.
- Pay expenses and receive inventory.
- Complete payroll.
4 Benefits of having a bookkeeper:
- Time to focus on your business: Bookkeepers free up time in your schedule for things like building your vision, polishing workflows, and boosting your bottom line.
- Accurate financial records: Hiring a professional bookkeeper minimizes the margin of error. Professional bookkeepers can help you generate accurate financial reports and data.
- Tax preparation: Tidy books mean less cleanup to do when taxes are due. Some bookkeepers offer tax preparation, which can be especially valuable when breaking down complex small business tax codes.
- Keep historical records: If the IRS or another entity audits your business, having solid bookkeeping records on hand is a huge plus. Often, the auditing process is a simple review of your records. Things can become more challenging than necessary if your bookkeeping records are out of order.
Bookkeepers offer support to several organizations, including small businesses, nonprofits, and corporations and are vital to managing a business’s finances. Bookkeepers make it possible for business owners and management to make financial decisions, identify trends, and plan for the future.
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