What Does A Bookkeeper Do Exactly?:
Many of us have heard the term bookkeeper but what exactly does a bookkeeper do? Why would someone need a bookkeeper? These questions are answered in my most recent podcast.
I encourage you to listen to the audio recording. If you prefer to read, you can see a summary below.
What Is Bookkeeping?
In accounting lingo, it is the processing of recording financial transactions such as purchases, sales receipts, purchases, expenses, revenues. Bookkeeping also involved administering the finance back-office functions such as cheque printing, payroll processing and other finance requirements.
In basic terms, it is the process of dealing with all of the finance items for a business to operate.
Why Would You Need A Bookkeeper?
A good bookkeeper will make sure that the finance part of your business is running smoothly so you can focus on what you do best. Most business owners start out by doing all of the business functions (HR, finance and accounting, marketing, business development, etc.) and start to outsource each area as they grow.
What Will Proper Bookkeeping Allow You To Achieve?
You will be able to:
- Get a clear picture of your financial situation
- Analyze profit by product/service/project etc. so you know where you are making your money and where to focus your efforts
- Plan using tools such as budgets and other reports
- Instantly know who hasn’t paid their bills and who is owed money
- Allow you to produce information for the purposes of loan applications or to shop around with potential investors
- Make sure you aren’t losing money (either in your business or literally through theft, fraud etc.)
- Provide your accountant the records so they can prepare your taxes -> this will save you money on your accounting costs
- In the event of an audit, provide a clear record of your business activities
I Would Love To Hire Someone to Take Care Of The Finances But Isn’t It Expensive?
From my experience, business owners start out with the mentality that every dollar they spend should lead to another dollar earned. As a business grows, they will realize that the most valuable item cannot be purchased – more time in a day. So in my view, whenever you start to feel like you wish you had more time to focus on your core business activities instead of spending a sunny Saturday afternoon at home with a shoebox of receipts, it may be time to engage a bookkeeper.
Not all bookkeeping packages are costly and we work out a custom fixed price solutions for our clients. For smaller businesses, we will offer a quarterly bookkeeping service which is less costly but still takes away the stress from the business owner’s life and frees up their time so they can focus.
Fine, you sold me!
On a Final Note – bookkeepers are specialists at what they do so they can do the work much quicker than an average person and will know about things that someone who is not regularly in the field wouldn’t know. Contact us today for more information.