Every year, small businesses get revenue loss due to the lack of accurate financial reports. Without professional accounting and bookkeeping services, you are blindly driving your business.
Whether you are a small restaurant, a manufacturer, or a life coach, Bookkeeping helps you maintain accurate financial records that are required under law to maintain.
Still, now convinced what exactly the role of a bookkeeper is and why it helps you make your business process easier? Read on.
Who is a ‘bookkeeper’ and how does it help businesses in decision making?
Bookkeeping helps businesses in many ways, bookkeper maintains the day-to-day financial data of any business or an individual. The detailed process includes the data collected from all the business transactions, setting up the accounting records, maintaining the invoices, the company’s sales record, payroll, assets, expenditures, liability, etc.
Tracking of daily transactions
A professional bookkeeper can handle the recording of day-to-day transactions.
Preparing invoices and managing the accounts receivable ledger
Managing the complete accounts receivable ledger, maintaining invoices from suppliers’ end – and chasing late payments – is also done by your bookkeeper.
Keeping an eye on cash flow for better growth
One of the most important roles of a bookkeeper is making sure the business doesn’t run out of cash flow. They track this by monitoring the balance sheet of revenues to expenses. Then they can advise if the company funds need extra cash or not.
Preparing the books/ accounts for the business using cloud accounting software
It’s the bookkeeper’s role to ensure all the accounts are valid and up to date. This allows the accounting department to make the data transfer process in the cloud account software easier. This also helps in making the tax return filing easier for the business.
In summary, it’s the bookkeeper who handles the financial data gathering so that the accountant can concentrate on the strategic financial process.
Should you perform in-house Bookkeeping or Outsource Bookkeeping Service?
Many small business owners take charge of bookkeeping management on their own to save expenses. However, with business growth and increased transactions, handling bookkeeping becomes more complex and time-consuming. This naturally takes time and the focus away from the core business itself but also causes the risk of not having accurate financial data projections.
Due to this fact, you might consider outsourcing bookkeeping and accounting services to the company.
Here are the most common events when you should consider outsourcing your Bookkeeping:
- Your tax or financial data reports are not accurate
- You do not get time to focus more on your core business process
- You forget to send invoices and in the end, gets hurdle of the complex process of tax deductions and late penalties
- Unsure about your profit- loss reports
- Worried about your cashflow
Here is Why you should outsource Bookkeeping?
Especially for small businesses, the benefit of outsourcing bookkeeping services is cost. Outsourcing your Bookkeeping is a more cost-effective solution than hiring an in-house bookkeeper. It also saves the infrastructure cost, salary, and time spent in hiring internal resources.
Outsourcing accounting and bookkeeping services eliminates the issues associated with:
Whether you are handling the books yourself or hiring, training and supervising external resources, it is a time-consuming task. By outsourcing your Bookkeeping, a business owner will free-up a lot of time and effort that allows you to focus on your priority- the business growth.
Experience and Expertise of Professional Bookkeepers
Qualified financial experts and accountants will handle your bookkeeping reports when you outsource your service. It will give you expert insights into your business operations, helping you to make the right business decisions.
Get real-time updates and advice when you need it
Accounting and bookkeeping firms are legally obliged to stay updated, constantly changing regulations and laws around taxation. Therefore, when you work with a reputed bookkeeping firm, you’ll have peace of mind knowing that your accounting reports are prepared with the current compliance laws.
Scale your business without worrying about the tax and financial reports
Accounting and bookkeeping needs change when your business grows. A bookkeeping firm can advise you on the services that you need without having to worry about increasing staff resources. In the end, it may become your business partner and help you streamline your overall business process.
Accrels provide a complete accounting and bookkeeping service that goes beyond the basics. We also provide you with proactive advice that will improve your efficiencies and allow you to make smarter financial decisions. Learn more about our services today.