Very simply defined, a bookkeeper is someone who keeps your books for you. Whether you’re selling enterprise-level software, your dog-walking services or knickknacks at your corner shop, you have to deal with money coming in and money going out. A bookkeeper is a pro who helps you keep track of all this money you’re making.
But it’s easy to understand that your mental powers and abilities need to be focused on launching and maintaining your business, not on keeping records. Since as long ago as 2600 BC, as far as anyone can determine, there have been bookkeepers. What used to involve a stylus and clay tablet now involves spreadsheets, QuickBooks and scanners.
While big decisions involving taxes and financial leaps are often left in the hands of degreed accountants, the day-to-day work of keeping track of finances for a business is often handed off to a contract bookkeeper. Your trusted bookkeeping service can provide you a glimpse at where your business stands at any given moment, and that’s invaluable insight to have.
A freelance bookkeeper works for several companies at once and is available by monthly contract. Other terms may also be available.
What Are The Duties Of A Bookkeeper?
The first responsibility of a bookkeeper is data entry and receipt organization. Each item that impacts your company’s finances is properly entered and labeled, bills are paid and receipts are recorded. Incoming payments are logged. Invoicing and collections may be part of the deal.
But a bookkeeper doesn’t just plug numbers into a spreadsheet. A certain amount of analysis and legal knowledge is required because the work of a bookkeeper can help you keep your business on the right financial track, help determine if financial arrangements are legal, assist with documentation for surviving an audit and more.
The freelance bookkeeping service you choose is also responsible for 4 crucial reports to you:
- An income or profit and loss statement showing your revenue and expenses for specific dates
- A balance sheet that offers you a snapshot of your financial situation at any moment in time
- A cash flow statement that provides a record of the money coming to and going from your company, and
- A statement of total recognized gains and losses – also called a statement of changes in equity – that shows how share capital, reserves and retained monies have changed.
Additional Duties Of A Bookkeeper
You may choose to make a bookkeeping service responsible for tagging and monitoring fixed assets, dealing with sales tax remittance, paying suppliers or contractors, dealing with debt payments and handling and recording incoming cash and depositing it at the bank. Other services that may be provided include account reconciliation, working with an accountant or tax lawyer, processing payments and more.
When you select a top-quality bookkeeper, you may be able to get help with budgeting decisions, glean information that will help you understand how your business ebbs and flows with the seasons and more. You also get the peace of mind that comes from knowing a pro is in charge of this aspect of your business. And of course, you get back the time you were spending dealing with financial matters yourself.
When you add it all up, you see that bookkeepers do plenty to keep themselves busy. In fact, the work they do for you can free up hours each week from your schedule and let you focus on doing what you do best.
Isn’t it time to move up to a professional bookkeeping service that can help you stabilize and track your business and assist your business in reaching greater success than ever before? For most business owners, a bookkeeper offers welcome assistance.