As an entrepreneur, your primary role is to monitor your business’s finances. An accurate update of financial records will help you make critical decisions that can positively impact your business.
It may be impossible to perform simple tasks such as raising invoices or calculating your profit margin without proper bookkeeping services.
So, if you can’t handle all financial activities by yourself, it may be prudent to hire a professional bookkeeper. A bookkeeper will use various monitoring tools to create a data set that reflects the financial position of your enterprise.
Creating and Managing an Account System
A bookkeeper knows the best way to keep your business records. They can create a customized accounting system based on your financial needs and transactions.
Bookkeepers can monitor receipts, bank statements, invoices, and other vital transactions using special software such as QuickBooks.
Reconciling Business Accounts
Bookkeepers can spot missing links on critical accounts statements and eliminate discrepancies. For instance, a professional bookkeeper can monitor your bank statements and identify overpayments or underpayments. As a result, your statements will reflect the true position of your finances.
Bookkeepers also have a keen eye on accounts receivables. They can easily tell any outstanding amounts due to your business.
Without a proper check of the outstanding amounts, your business may show that it has adequate finances, whereas it doesn’t have.
Creating Financial Reports
A professional bookkeeper can create financial reports such as balance sheets and income statements. These financial statements are crucial in understanding the implications of your business choices and can help you make the right decisions for your business growth.
Monitoring Cash Flow
A bookkeeper can help you monitor the flow of finances, so you don’t run out of cash to operate the business. To achieve this, they keep an eye on your revenue and expenses while also advising you on ways to make cash available for the business.
A bookkeeper comes in handy whenever you don’t know how much stock you hold in inventory. They can count your stock items and immediately report if you need to add stock.
The stock-taking activity is most crucial when closing the current financial period and transitioning to a new one at the end of the year.
Preparing the Business Records for Taxation
As a requirement, businesses should file taxes based on profit earnings. Bookkeepers can help you prepare all records of taxable income, preparation for tax audits, and filing of tax returns. As a result, you’ll not be caught by late submission of taxes, which may attract hefty fines.
Managing Foreign Currency Transactions
If you handle foreign currencies, one of the ways a bookkeeper can be of help is to maintain a foreign currency account. Using the current foreign exchange rates and modern business Apps, bookkeepers can help you analyze and create an accurate account of all your foreign transactions and dealings.
Managing Bank Feeds
Bank feeds allow you to monitor all banking transactions in real-time. In addition, an experienced bookkeeper can help you monitor banking transactions using special software and business apps whenever you wish.