Small businesses are soaring these days. And behind every successful small business, there is a passionate and dedicated bookkeeper.
Bookkeeping is probably the most important aspect to help the business grow.
For small businesses, Bookkeeping is very important. Let us discuss 13 crucial things that Bookkeepers do for small businesses.
- Day to Day Accounts management
Keeping an eye on day-to-day accounts, sales or purchases can help in managing cash flow. A bookkeeper can be on their toes to track your day-to-day accounts activity. It saves your manual data entry time.
2. Maintaining Up-to-Date and Accurate Records
A bookkeeper’s primary task is to ensure that all the records are up to date. The best bookkeeping services would mean keeping an up-to-date record of all business operations. Additionally, they are also responsible to find any gaps or inconsistencies in the records and resolve the problem in time.
3. Keep businesses aligned With tax laws
Timely filing of taxes is very crucial to keep your business running smoothly. That’s where bookkeepers ensure to keep the business aligned with the tax laws to avoid any notice from the Government and strengthen best business practices.
4. Keep your business tax-prepared
Tax deadlines are unforgiving. For a small business, often forgetting tax deadlines is common. That’s where an efficient Bookkeeper will keep you updated with all the tax filings and keep a track record of additional fines that may be imposed.
5. Manage bank feeds at all levels
Primarily, the Bookkeeping service involves a Bookkeeper managing all transactions through dedicated software that links with your corporate account and helps you manage and see all bank feeds real-time.
6. Cater to accounts payable
It involves making and managing payments on behalf of your business such as paying suppliers, taking care of minor expenses.
7. Managing accounts receivable
Another important responsibility of a Bookkeeper is to send out invoices in time to all the clients in order to receive payments in time. This way a Bookkeeper manages accounts receivables and marks entries in the ledger.
8. Prepare business financial statements
Bookkeepers also cater to preparing financial statements for small businesses. These statements involve profit and loss, cash in and outflow, balance sheet data.
These financial statements help in identifying expenses and liabilities in the business and create a business routine to identify profit and losses.
9. Payroll processing task
The outsourced accounting services or Bookkeeping can vary depending on the needs of the small business. At times, Bookkeepers fulfill payroll processing tasks also, processing paychecks to employees, and preparing tax payments.
10. Take care of foreign currency transactions
Bookkeeping services also involve maintaining an accurate foreign currency transaction for foreign currency accounts and also make sure to maintain accurate foreign currency accounts, utilizing current exchange rates.
11. Assessment of Stocks in the business
For small businesses, bookkeepers assess the stocks in the business and product inventory control reports. These reports are helpful in tracking any discrepancy or inconsistency in the stock-flow in and out.
It is carried out at the end of a financial year-end with the reports such as profit and loss statements.
12. Cash flow tracking
The task which helps to grow or reduce the business is tracking an accurate cash flow. Bookkeepers are smart and vigilant, they keep an eye on all revenues and from time to time apprise the small business owners about it.
13. Preparing the Books for smooth business operations Bookkeepers also take the job of preparing and managing books up to date very well so that in future any accountant can refer for smooth business operations.