For many people who run a business, keeping their accounts in order is of the utmost priority. But this task is easier said than done, and many a business has made more than a few costly errors – or even floundered – just because their financial records were not in proper order. The prime reason why you need to keep your financial records in order is that it allows you to see the status and condition of your business, among other things. If you don't know where your business is going or where it is headed, you can end up making the wrong decisions or be unaware of a looming emergency that can set your business back. Fortunately, if you are having difficulties with your business accounts and financial record-keeping, you can turn to a bookkeeper who can perform your vital financial tasks for you. But what else can you really expect from a bookkeeper? Here’s what we at chicagoareadivorcelawyers.com consider as your best guide.
The basics of what your bookkeeper can do
A bookkeeper or bookkeeping service can perform a number of tasks, but there are some tasks that are common to all bookkeepers or bookkeeping services. These tasks include the following:
- Keeping records of your daily financial transactions. Your bookkeeper should be able to handle your financial records every day, including bank transactions. If you are using accounting software that comes with automatic feeds every single day, then your bookkeeper can make use of this as well. Once your bookkeeper feeds your bank transactions and statements to your accounting software, then it allows you to keep track of your cash flow, aside from saving you time when it comes to data entry.
- Sending out your invoices as well as managing your business’ accounts receivable. Your bookkeeping service can also be in charge of preparing and sending out your invoices. They can then also manage your business’ accounts receivables since they already know what your prospective income is. If you are having difficulties with late payments and have to deal with chasing payments from your customers or clients, you can put your bookkeeper in charge of this as well.
- Handling your accounts payable. Aside from handling accounts receivable, your bookkeeper can also handle your accounts payable. They can, for instance, make and settle payments on your behalf, and this can include paying invoices from your suppliers and paying expenses, and they can also be in charge of handling petty cash for your business.
- Keep an eye on your business’ cash flow. Your bookkeeper isn’t just the one handling your financial transactions, payments, receivables, and so on – they can also keep an eye on your business’ cash flow and make sure you have a steady flow of cash at all times. They can do this by closely watching and assessing your business’ balance when it comes to expenses and revenues. They can then offer you professional advice or inform you if they see that your business needs more cash or needs to pay more attention to your cash flow.
- Prepare the books. Another task you can expect from your bookkeeper is the preparation of your business’ books for your accountant. The bookkeeper should make sure that all your accounts are up to date and valid, especially when your accountant finally needs them to deal with taxes, VAT, loans, and so on.