You have started your business and having a great time growing it. However, you find yourself doing the bookkeeping all the time. You might be wondering whether you should focus on all this accounting-related work or think about achieving the business’s strategic goals.
Well, that’s something that every business owner worries about at one point or another.
It’s a struggle to do the bookkeeping. You’d spend most of your time making sure that the balance sheet equals on both sides. However, as a business owner, you have to save time and effort in setting new goals, boosting the marketing campaign, appropriately managing the logistics, etc., rather than recording the daily transactions.
You just have to have some information on what bookkeeping is and the duties of a bookkeeper. You have to know that because you’d hire a bookkeeper someday who will provide the bookkeeping services for your business, and you have to ensure that you can have a check and balance.
So, without further ado. Let’s learn all the basics about bookkeeping services.
What is a Bookkeeping Service?
If you’re looking to have someone to keep the records of all the financial transactions that happen in your company and track them as well, you have to hire a bookkeeper. That’s basically what the bookkeeper does. They ensure that all your financial activities of the day are recorded as financial reports and will be presented to you whenever you require them. You’d need to see these reports. It will help you understand how well your business is doing and what future projects you can take that would be viable — keeping in mind the business’s budget.
Not to forget, bookkeepers not only record the day-to-day transactions, but they also do many other tasks as well. Some of them include
- Keeping track of the accounts receivable and accounts payable
- Tax return preparation
- Monitoring the financial status
- Reporting to the Management
Many people confuse between accounting services and bookkeeping services. They are not the same. In simple words, bookkeeping is about recording all the daily transactions.
On the other hand, the accounting service includes preparing and analyzing all the gathered by the bookkeepers and compiling them into financial reports. And, the financial reports give a good indication about the company’s performance.
Can Bookkeeping Help Your Business?
If you’re thinking of hiring a bookkeeper for your business, you’re making an excellent decision. There are countless benefits of getting a bookkeeper on board.
Let’s take a look.
Concentrate More on the Primary Objectives of the Business
As a business owner, you have many tasks, and you can’t be recording the daily transactions for hours and hours. You have to look after marketing, customer service, production, logistics, and much more. Therefore, having a bookkeeper who manages all the tasks like payroll processing and recording transactions is vital for your business. By doing that, you’d have a lot of time in your hand to help accelerate your company’s growth.
Compliance with the Law
A bookkeeper has to remain up to date with the current laws regarding accounting and the business. That’s why all the bookkeepers would always ensure that whatever the transactions they record or perform any financial activity, it complies with the latest laws. You’d save a lot of your time as you don’t have to read all the rules. You can simply leave it to your bookkeeper. They will handle it for you. And, if you require any assistance or want to know the current rules and regulations, they can help you with that as well.
Invoicing Is Completed Quickly
Something which plays an important role in the business is to make sure that the invoices are sent to the customers and the suppliers on time. You can not lose your suppliers or customers if you don’t do that on time. Moreover, keeping your business’s cash flow under check is vital too, and that can be achieved when the invoices are completed quickly because the payments would be received on time when the invoices are sent on time. And, bookkeepers would play a key role in acquiring the payments on time for your business.
Access to the Accounting Softwares
As a business owner, you’d probably not know about the accounting software, and to have a perfect bookkeeping service, you’d need to use accounting and bookkeeping software. Therefore, when you hire a bookkeeper, they’d know how to use them and record everything accurately. It makes the life of a bookkeeper and an accountant easy as well.
Be Prepared to Pay the Taxes
When you have a bookkeeper working to manage your finances and daily transactions, you shouldn’t worry about paying the taxes. The bookkeepers know the nitty-gritty of the documents required for paying the taxes. All the receipts are essential to serve as proof and the book of account. Your bookkeeper will make sure that all the financial statements are up to date to utilize them to pay taxes. They would know how to maximize the tax deductions.
When Should You Hire a Bookkeeper?
There are a bunch of questions that come up in the mind of people like a small business owner. Whether it will be a good decision to hire the bookkeeper, is it worth it, at what stage of the business would be the right time to hire them?
Well, these are some of the things which everyone wonders about. You’re not alone.
Let us clear your ambiguities.
Ideally, you would consider onboarding the bookkeeper right after you’ve started the business. You would have your financials sorted out from the start. The reason is that you’d miss recording the invoices and receipts for the initial months if you don’t hire a bookkeeper, which could become problematic down the road. It is going to be the best decision if you hire a bookkeeper.
Without a doubt, bookkeeping is one of the essential services a business owner would need. The business owner should not mistake overlooking the importance of the bookkeeper and not hiring them. They will help maintain all the financial records, maintain the cash flows, and see if the projects would be viable.