Your business has taken off, you’re busy handling a bunch of things at once, and now your concern shifts to how you’re going to manage your company’s finances! That’s when you need to find someone that can handle all your finances so that you can focus on your business. You need a bookkeeper!
A good bookkeeper will keep you updated on the financial health of your company without burdening you with unnecessary concerns. Bookkeepers are responsible for keeping track of company transactions, expenses, and payroll. They can also help prepare financial statements and reports. Nowadays, most bookkeepers use accounting software, ensuring faster turnaround times, and accuracy.
Here are some of the essential duties of a bookkeeper:
Financial Record Maintenance
Financial record maintenance includes monitoring and updating financial records. These records are:
1. Receivable Statements: covers the income or revenue generated over a specific period
2. Balance Sheet: a record of the company’s financial condition at a given point in time
3. Cash Flow Statement: maintains a record for the cash coming into and out of the company
4. Equity-based Statement of Changes: reflects the company’s retained earnings, shared capital, and earnings that have changed over a specific period.
Regular & Transparent Communication
Monitoring and maintaining financial records can be as strenuous as it is time-consuming, while also requiring accuracy. Communication gaps may lead to inaccuracy in the maintenance of regular financial records, especially in the case of
transactions with coworkers. This lack of communication can lead to errors in record keeping. A systematic method for cash distribution, expense account reimbursement, and receipt submission will help establish an active line of communication.
Budget & Inventory Requirements
A bookkeeper acts as a mediator between all departments to regularly analyze inventory needs. When products or company supplies run low, the bookkeeper makes notes and ensures that they are available.
Managing budget needs and constraints are part of a bookkeeper’s job description, as well as, ensuring proper record management and allocating resources accordingly.
Some additional functions of a bookkeeper include:
1. Categorizing and reconciling transactions
2. Working with your accountant to file your taxes
3. Processing invoices
4. Identifying critical factors of your business – profit, loss, expenditure, revenue, tax, and more
Because bookkeepers take care of some of the most critical aspects of your business, they need to be highly reliable. They play a vital role in the success of your company, so choose wisely!