Bookkeeping is not only important for tracking the financial status of the business but for regulatory compliance too. Besides, it requires much time to maintain the accounting and management records. Thus, to help keep records, accountants provide a wide range of bookkeeping and accounting services. Here you will understand in depth what bookkeeping services are, the benefits of bookkeeping, and what bookkeeping does for your business.
Bookkeeping services include maintaining records and tracking the financial transactions for a business. Plus, the bookkeepers must summarize the business activities regularly in the financial reports. The reports depict the financial aspects and performance of the business.
Maintenance of the financial records and bookkeeping services include the following:
- Monitoring performance
- Cleaning up accounts books
- Maintaining accounts payable and receivable
- Managing to report
- Undertaking cash flow analysis
- Monitoring budgeting
Nonetheless, the bookkeeping services vary from the accountancy services. The bookkeeping services include the management of the financial records daily. So the bookkeepers must gather and maintain the financial statements and information through which the accounts books are prepared.
On the other hand, accounting includes analyzing, reporting, and summarizing the financial data that the CPAs or bookkeepers collect. Generally, bookkeeping comprises a double-entry system in which all transactions and events are recorded by two ledger accounts. Plus, the accounting reports make a snapshot of the financial statements and business performance.
Why Is Bookkeeping Service Important?
The duties of a bookkeeper include providing accurate financial data so the accountants can easily prepare the firm’s financial reports and tax returns. The reports are useful for business owners, managers, and stakeholders to assist in making the right business decisions.
Let’s have a guise at some of the fundamental bookkeeping services a bookkeeper can provide to any business.
Data Entry includes recording financial transactions, that is, for maintaining the records coming in and going out from the business. In fact, it is the base of bookkeeping and accounting services because financial data is essential for preparing financial statements. The financial records are vital to have a clear view of the business and how it is performing and progressing.
Bank reconciliation includes monitoring the financial transactions and comparing them with the transitions that reflect the bank declarations. Indeed, bank reconciliations are crucial for the business to assist in finding the correct data entry mistakes and unnoticed transactions.
Accounts Receivable, Accounts Payable and Payroll
A bookkeeper must ensure that customers’ payments and invoices are collected at the right time. In addition, they should ensure that bills are not running out of the budget. Moreover, the bills should be paid at the right time to prevent delays or to hold back the credits of the supplier. Additionally, the bookkeeper must commence the payroll services to maintain payable and receivable accounts. For instance, it includes calculating the employee salaries, adjusting deductions, and confirming that the net salaries are given to the employees before the due date. Timely payment of wages ensures that employees are satisfied and pleased with the company. Plus, payroll is also crucial from the compliance point of view.
Monthly Financial Reports
There are multiple financial reports handled by a bookkeeper to be made each month to track the business performance. The financial reports include the following features:
- Balance Sheet: It reflects the current position of your business.
- Profit & Loss: It is suitable for tracking the expenses and earnings of the businesses, whether they are causing profits or not.
- Cash Flow Statement: This statement will record the transactions and show how much cash a business has.
- Accounts Receivable: It is a statement depicting the debtors and how much is crucial to get from the customers when the receivables are overdue.
- Accounts Payable: It shows the amount that must be paid to the vendors even when the payments are overdue.
What Are The Perks Of Bookkeeping Services?
The most important decisions made by a company’s owner include hiring a bookkeeper to get accurate bookkeeping services for small businesses’ growth. There are a plethora of advantages of getting bookkeeping services:
· Ability To Focus On Essential Operations
As an owner of the company, you must be burdened with several vital operations of the business, including production, marketing, and relationship management. Due to this, it is hard to track the financial statements, expenses, payroll processing, and invoices at the right time. Nevertheless, the bookkeeper has to consider all these activities for growing your business.
· Compliance With Laws
A bookkeeper has to ensure that you fulfil the legal and statutory regulations regarding the business. Plus, they ensure that accounts and books are maintained per the latest laws. It saves time, and you don’t need to check the laws in detail.
· Speedy Invoicing
The most crucial aspect of the business includes sending invoices to vendors and customers before the due date. Additionally, you can maintain the cash flow and achieve the goal by ensuring the invoices are spent promptly, which is only possible by a bookkeeper.
· Access To Software Of Accounting And Bookkeeping
As a business owner, you would not have the skills and experience to use online accounting and bookkeeping software. So it is beneficial to hire bookkeeping services. The bookkeeping software comprises several functions like financial statements, balance sheets, cash flow, profit and loss, and bank reconciliation that are suitable to make accounting and bookkeeping easier.
· Advance Preparation For Tax Season
If the accounts books are up to date, there would not be any stress regarding the tax season and preparation of the accounts or books. Plus, a bookkeeper has to ensure that tax financial statements and additional balances are maintained to maximize tax deductions and enhance profits.
· Broad View Of Your Finances
Maintained financial terms are necessary for understanding the finances and applying for the loan when it is essential. Fundamental financial statements like P & L, expense reports, and balance sheets provide a clear view of the business. Plus, the financial statements let you predict how much is owed by the business and how much you owe.
Why Choose Bookkeeping Services From Business Assist Accountants?
After reading all the benefits of bookkeeping services, you must be convinced to get them to have a clear picture of your finances. So consider getting bookkeeping services from Business Assist Accountants for managing the financial records like tax return preparation, invoicing, tracking performance indicators, cleaning up the books of accounts, managing accounts payable and receivables, reconciling financial statements, management reporting, and cash flow analysis. So what are you waiting for? Hire a bookkeeper to ensure that no invoices are unrecorded.