Keeping track of daily transactions
A bookkeeper can handle the recording of day-to-day bank transactions. Sending out invoices and managing the accounts receivable ledger
Preparing invoices and sending them to clients is usually the bookkeeper's responsibility. Managing the accounts receivable ledger – and chasing late payment – is also likely to be done by a bookkeeper. Handling
the accounts payable ledger
Up to a certain dollar amount, it's usually bookkeepers who will make payments on behalf of the business. This includes payment of supplier invoices, expenses and petty cash. Keeping an eye on cash flow
One of the most important tasks for a bookkeeper is making sure the company doesn't run out of day-to-day money. Preparing the books for the accountant
It's the bookkeeper's job to ensure that the accounts are valid and up to date when the accountant needs them. This allows the accountant to use their skills and knowledge to make business recommendations and complete company tax returns. In summary, it's the bookkeeper who does the day-to-day work so that the accountant can concentrate on strategic financial operations. So bookkeepers play an important role – without them, accountants can't do their jobs. FIVE WAYS THAT A BOOKKEEPER CAN HELP YOUR BUSINESS
If your business is small, you might be the bookkeeper – at least until you can afford to hire someone to do the work for you. Once your business reaches a certain size, it makes sense to have someone do the bookkeeping for you. Here are five ways that a bookkeeper can help:
1) Concentrate on your business strategy
Bookkeeping involves tracking the fine detail and recording it in accounts software. Working with these numbers can sometimes make it hard to see the big picture. So it's often better to have someone else do this work.
2) Reduce your accounting costs
Are you using an accountant to manage your daily transactions and run your monthly payroll? If so, you could save a lot of money by having a bookkeeper do this work instead.
3) Be an extra pair of eyes watching your cash flow
If you want to avoid running out of money suddenly, you need to keep an eye on your cash flow. It helps to have someone else checking the numbers here, making sure your cash keeps flowing. A bookkeeper can do that.
4) Get quick access to vital figures
Having an accountant manage your monthly business reconciliation and reporting is important. But what if you need some financial information part-way through the month? Bookkeepers can give you the information you need quickly, without you having to wait for your accountant to respond.
5) Keep control of your financial data
Few small businesses can afford to hire their own accountant, so most accountants work on a part-time basis for their clients. If they use quality online accounting software to manage your financials, it makes collaboration much easier. Quality software means that your bookkeeper can work on the same set of data as the accountant. They can both work together to give you the best outcome and help your business grow.
