If you run a small business, then you are certainly familiar with juggling various tasks at once. In addition to keeping things running, you also need to keep your clients or customers happy, generate income and handle financial information. Well, financials can be a headache and this is where a bookkeeper becomes indispensable. But just what are the roles of a bookkeeper? This read will delve deeper by looking at the many tasks expected from a bookkeeper.
A bookkeeper is tasked with staying on top of your accounts on a daily basis. By tracking every purchase or sale, and using the right program for the job, it is easier for them to keep an eye on your company’s cash flow.
Help Your Company Stay On The Right Side of the Law
Tax is without a doubt, a tricky aspect. A simple mistake, whether it was intentional or not could have dire consequences. This is where bookkeepers Devon are especially helpful. They help ensure your company stays abreast with the current laws.
Maintain Accurate and Up to Date Records
A bookkeeper also ensures your records are up to date. It is also their job to look for any inconsistencies between your books and business accounts and tell you in time to ensure the issues are resolved quickly.
Help You Stay Prepared for Tax
Tax deadlines are just as stringent as the laws and regulations. However, for most businesses, doing the books isn’t their priority or even an interesting aspect and it ends up slipping under the radar. In order to keep the taxman happy and avoid the hefty fines, it’s important to hire a bookkeeper. They will ensure that your books or records are accurate, keeping you prepared for tax.
Handle Accounts Payable
More often than not, bookkeepers make payments on behalf of businesses. This includes handling petty cash, expenses even payment of vendor invoices.
Managing Bank Feeds
Bookkeepers, on the most basic level, manage transactions presented through software. With bank feeds, which link the software to your bank account, you get to see every transaction in real-time.
Send Out Invoices & Manage Accounts Receivable
Preparing invoices and sending them to your clients in order to get your payments on time is another vital bookkeeper responsibility. They can also manage your accounts receivable ledger and chase up late payments ensuring your records are always accurate.
Preparing Financial Statements
Bookkeepers are also tasked with preparing important statements for companies including the balance sheet, cash flow statements and profit & loss statements.
Financial reports are vital as they reveal your company’s bottom line, cash flowing in and out, assets and liabilities balance as well as operating expenses.
Dealing With Foreign Currency Transactions
Most business owners don’t know this but bookkeepers also maintain precise foreign currency accounts, using current exchange rates. This is made easier with compatible bookkeeping applications that instantly analyse the exchange rates.
Bookkeepers’ services can vary. Some can handle HR functions including fulfilling payroll. This includes helping companies with pay-checks processing as well as tax payments to employees.
Bookkeepers can also be tasked with producing inventory reports counting stock items for small businesses. They report any discrepancies to ensure you address the issues in a timely fashion.