Do you need some help with some of the financial aspects of your business?
Hiring a bookkeeper can make a massive difference in a business’s organizational and financial health. If you’re feeling overwhelmed by the financial side of things, then it can be a great idea to hire one to take some of the burdens off of your shoulders.
In this post, we’re going to go over some of the main bookkeeper responsibilities so that you have a better understanding of what you’re paying for when you hire one. Different bookkeeping professionals may specialize in specific duties, so it’s good to have a general understanding of what they do so you can hire the perfect bookkeeper for your business.
1. Overseeing Financial Transactions
One of the primary responsibilities of a bookkeeper is the data entry associated with daily financial transactions that your business undertakes. They’ll track accounts – debit and credit – with various clients and suppliers to make sure everything is above board.
Using your preferred software, they can keep an eye on your cash flow to ensure the financial health of your business. You can either hire a full-time bookkeeper, a full charge bookkeeping solution or a virtual bookkeeper.
2. Invoicing and Maintaining Books
Bookkeepers process all invoices associated with your business. This might include creating invoices for accounts receivable or settling invoices for accounts payable. Any financial discrepancies, they’ll either reconcile or report to you to deal with.
Depending on the type and size of business you run, the bookkeeper will use a single-entry or double-entry system. The simpler single-entry system records incoming and outgoing transactions in the same ledger, with a plus for incoming and a minus for outgoing. Double-entry is typically used for larger businesses and records incoming and outgoing transactions in separate books with two columns in each book, denoting debit and credit transactions.
3. Ensure You’re Complying With Laws
Bookkeeper duties don’t stop with the day-to-day stuff. They also need to ensure that you’re complying with all of the state and federal business laws. These are the things that cause business owners headaches because when it comes time to file your taxes, you can’t cut any corners, but being thorough is a time-consuming process.
A professional bookkeeper will have a good understanding of any relevant laws and make sure that you’ll never receive any letters from the IRS.
4. Preparing You for Tax Season
As with business laws and regulations, preparing to file taxes can be a complicated and time-consuming process for a business of any size. Your bookkeeper will keep all of your records accurate throughout the year and help prepare you for tax filing by handling all of the preparations, the actual filing, and any auditing that may come afterward.
This is arguably the most crucial and helpful responsibility that a bookkeeper has, as no business owner wants to think about legal matters and taxes.
Ensuring Your Bookkeeper Responsibilities Are Met
Now that you understand a bit better what a bookkeeper’s duties are, you can start interviewing candidates for your company. There’s no denying that these bookkeeper responsibilities will take a lot off of your plate, but getting the right person in the position is crucial as well. Don’t be afraid to ask your interviewees about anything we’ve discussed in this article to make sure that they can handle what your business throws at them.
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