For small business owners, juggling different tasks is not very new to them. From marketing to filing taxes, they do all the work, keeping the business running, and earning. However, when the business starts to grow, tasks are rising as well. The duties are overflowing that the business owner can no longer keep everything in control.
When your business is progressing, designating jobs to the appropriate persons will help you in so many ways. You can focus on your business operations, while the other essential tasks can take care of by experts. You can start at getting your own bookkeeper. But does hiring a bookkeeper benefit your small business? What does a bookkeeper do for a small business, anyway?
Bookkeeping for Small Business Owners
Bookkeeping for small business owners is surely helpful, especially when the daily transactions are piling up. Here are the essential tasks that bookkeepers do for a small business:
Handling and monitoring daily transactions
It is the bookkeeper’s job to handle and monitor the daily transactions of the business. From sales to purchases, the bookkeeper maintains the financial records up-to-date by entering these transactions in the business’ accounting system. The bookkeeper also has to keep track of the bank feeds to have a timely cash balance.
Preparing and sending invoices to clients
One of the bookkeeper’s responsibility is preparing and sending invoices to clients. The bookkeeper manages and looks over the process of accounts receivables, even chasing the late payments. Generally, the bookkeeper has to keep an eye on the accounts receivable records to maintain the books accurate and timely.
Managing general ledger
Since the bookkeeper records the financial activities, it is also the bookkeeper’s job to manage the business’ general ledger. The general ledger includes the accounts receivable and accounts payable ledger. The bookkeeper handles these two important records, keeping the amounts balanced and reliable.
Watching over the cash flow
Monitoring cash flow means keeping an eye on the cash activities of the business. The bookkeeper observes the coming in and out of cash within the business. It is an essential task as it determines the amount of available cash for the daily operations of the business. Typically, the cash activities are in the bank feeds in which the bookkeeper also monitors.
Preparing the books
The main purpose of having a bookkeeper is to prepare the books for the accountant. Remember that the responsibility of the online bookkeeper is different from the online accountant. The accountant’s job mainly focused on taxes and financial statements, unlike with the bookkeeper who largely focused on recording transactions. The bookkeeper ensures that business books are reliable before handing them over to the accountant or the business owner. There are several options where to hire a bookkeeper, but nowadays, getting an online bookkeeper is more advantageous. Online bookkeeping for small business will provide the same quality of professional work, but less cost. You don’t have to hire a full-time bookkeeper to manage your day-to-day financial transactions.