When it comes to your business financials, you want to have a solid understanding of what happens to all the money – both going in and coming out. Sometimes this requires an advanced software system and other times this can be done with simple tracking. Regardless of how you choose to manage your business finances, one helpful person who can help manage the money for your business is a bookkeeper.
Did you know that “bookkeepers” have been around since the early 1500’s? And the original bookkeeping method was done on clay tablets? Thank goodness for modern advancements!
As a business owner, you may be wondering what bookkeepers do and if you really need one. If you are struggling to manage your finances in any capacity, it is highly recommended that you find an educated and experienced bookkeeper who can assist you. However, you need to know what they will be doing for you and how their efforts will support your business.
Standard Bookkeeper Duties
In an effort to help support your business and educate you on the status of your business funds, bookkeepers typically monitor all of the different business accounts, transactions, and reports. They additionally organize, collect, and store all of the financial records for the business, including incoming and outgoing cash flow statements, reconciliations from any bills or invoices, and loss statements.
Furthermore, bookkeepers can:
- Pay invoices
- Track debits and credits
- Create financial reports
- Monitor financial records
- Organize transactions
- Complete payroll (if desired)
Different Types of Bookkeeping
Bookkeeping options vary, depending on your business type, size, and abilities, however, the following can typically be considered:
- Do-it-Yourself: This typically involves self-tracking, monitoring, and educating oneself on all of the financial pieces of the business by hand. It takes considerable time and effort to keep track of every financial piece and requires a great deal of organization.
- In-House Bookkeeper: Depending on your business type and size, you may require a bookkeeper to work as an employee for your business in which case they are a part of your business operations and can understand and contribute to all of the financial aspects.
- Bookkeeping Software: Thanks to modern advancements, there are countless bookkeeping software tools that can assist business owners in tracking their books. It’s important to make sure that you still have a solid understanding of all of the moving pieces when using a bookkeeping software tool.
- External Bookkeeper: When your business has the need for a bookkeeper who does not have to work for you full-time, an external bookkeeper is the way to go. They can be a resource for you to use regularly, but they are not required to be a part of your daily operations and typically can be communicated with via email, phone, Zoom, and / or via regular appointment (i.e. monthly, quarterly, etc.)
What Having a Bookkeeper Can Do For You
It’s no secret that when someone else can do a job better and more efficiently than you, this can make a world of difference in the success of your business. This is a huge reason why we recommend hiring a professional bookkeeper, like ourselves, to aid in your efforts to keep your books managed and running smoothly.
There are countless reasons why hiring a bookkeeper is recommended, but here are just a few:
- They can save you countless hours and lots of headache because they understand the best ways to track, note, report, plan, and consolidate your finances. Their education on these concepts is what makes them able to do the tasks above better and more efficiently.
- The time you save by having a bookkeeper manage your business finances allows you to focus on and grow your business in other ways.
- They help reduce stress on the business by providing accurate and timely financial information that can help you make other business decisions.
If you’ve been questioning whether or not to hire a bookkeeper, now is the time to commit to having peace of mind and security with your business finances. Allow us to help you and your small business have total financial freedom and security.
Looking for more bookkeeping tips? Check out these great resources!
The content in this blog post is provided for general informational purposes only and should not be considered professional tax or legal advice. The author is not a Certified Public Accountant, and no assurances can be made regarding the outcomes or consequences of tax returns, IRS actions, or any financial decisions based on this information. Readers are strongly advised to consult with a qualified tax professional or legal advisor for personalized guidance specific to their individual circumstances. The author expressly disclaims any liability for decisions made based on the information presented in this blog post.
