How will a bookkeeper help your small business?

Here are some ways a bookkeeper will help to keep your business running smoothly:rnrnKeep you compliantrnAs a small business owner, you’ve got enough to worry about without having to stay up to date with all the legislative compliance changes. That’s exactly how your bookkeeper can help; it’s their job to know about industry updates and compliance changes so you don’t have to. Bookkeepers stay aware of changing laws, so they can ensure your small business is compliant with payroll and tax laws, as well as any other financial rules and regulations that affect your small business.rnrnHelp you learn about your business numbersrnA great bookkeeper is someone who doesn’t mind sitting down with you and running through the “ins and outs” of all things bookkeeping. They will take the time to explain your business numbers, show you the insights behind them, provide suggestions, tips of the trade and answer your questions without any accounting jargon.rnrnA bookkeeper also keeps track of your company’s financial health and advises you on decisions that can help you grow your business. They can also warn you if you’re about to make a decision that could hinder your longer-term growth.rnrnFor more details on why it’s important to hire a bookkeeper, read out article here.

What are the main responsibilities of a bookkeeper?

Bookkeepers oversee a company’s financial data and compliance by maintaining accurate books on accounts payable and receivable, payroll, and daily financial entries and reconciliations. They perform daily accounting tasks such as monthly financial reporting, general ledger entries, and record payments and adjustments. Additionally, many bookkeepers also assist with basic HR duties like new hire documents, compliance, and temporary disability insurance and workers’ compensation filings, making them an indispensable part of an organization’s fiscal fitness.rnrnA bookkeeper’s main responsibilities include:rnrnMaintains records of financial transactions by establishing accounts; posting transactions; ensure legal requirements compliance.rnDevelops system to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.rnMaintains subsidiary accounts by verifying, allocating, and posting transactions.rnBalances subsidiary accounts by reconciling entries.rnMaintains general ledger by transferring subsidiary account summaries.rnBalances general ledger by preparing a trial balance; reconciling entries.rnMaintains historical records by filing documents.rnPrepares financial reports by collecting, analyzing, and summarizing account information and trends.rnComplies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions.rnContributes to team effort by accomplishing related results as needed.

Do you need a bookkeeper if you have an accountant?

Contrary to popular belief, accountants and bookkeepers perform distinctly different tasks for the businesses they serve. Bookkeepers are responsible for on-going maintenance of their clients’ general ledgers. A bookkeeper’s common responsibilities consist of:rnrnCompiling data on a daily basisrnrnCategorizing expenses in the general ledgerrnrnReviewing the general ledger for accuracyrnrnReconciling bank statements against the general ledgerrnrnGenerating financial statementsrnrnAccountants use the accurate and up-to-date general ledger maintained by the bookkeeper to provide advisory services, such as:rnrnAnalyzing the company’s financial datarnrnPreparing income tax returnsrnrnProviding tax planning advicernrnRead our article about the key differences between a bookkeeper and an accountant.