When you’re passionate about your business, it can often seem like handling finances is getting in the way of the big, exciting goals you have for your company. Spending time on payroll, accounts payable and receivable, and reconciling your financial statements is an important task, but chances are that as an entrepreneur, you already have many tasks and responsibilities that require your attention. According to Fundera, hiring a bookkeeper can lift the weight of these responsibilities off of your shoulders while also ensuring that your finances are being taken care of properly. Below are some of the many services a bookkeeper can perform to help streamline your business finances.
Reconcile Your Bank Accounts
Making sure that the transactions you log in your accounting software match the details of your bank and credit card statements is essential for your business’s financial wellness. Keeping track of where each dollar is coming from and where it goes is the best way to properly account for income, expenses, and changes in balance sheet accounts. Your bookkeeper will also keep an eye on your overall financial feeds, making sure that payments are coming in and going out as scheduled and that your resources are being properly allocated.
Handle Accounts Payable and Receivable
Your bookkeeper can handle both your accounts payable (money you owe) and receivable (money due to you) so that you do not have to spend any more of your valuable time sending customer invoices and paying vendor bills.
Work with Your Accountant to Prepare Your Taxes
Bookkeepers often serve as translators between small business owners and their CPAs or accountants when tax season rolls around. They make sure that your tax preparer understands all of the documents and information you provide so the tax return reflects what occurred in your finances accurately.
Create Financial Statements
Your bookkeeper will prepare your balance sheet, profit and loss report, and any other financial data needed such as a general ledger or cash flow statement. If your business requires any additional reports, those can be generated as well.
Between time sheets, paychecks, and tax forms, there is a lot to keep track of within the category of “payroll.” A bookkeeper can help you manage all facets of your payroll process to make sure that employees get paid the correct account and that tax forms are filed in a timely manner.
Ultimately, hiring a bookkeeper frees up much of the time that you spend dealing with the financial side of your business and allows you to get back to what you do best. Scaling and growing your business are much easier when you outsource the tasks that you feel you lack the ability to do or simply don’t enjoy. This allows you to work on creating products, delivering services, and focusing on the big-picture goals of your business while feeling secure in your company’s financial health.